Saudi Electricity Co. (SEC), the Kingdom’s utility provider, reported net profit after Zakat and tax of SAR 7.517 billion for H1 2021, versus net loss of SAR 3.31 billion in a year-earlier period.
| Item | 6m 2020 | 6m 2021 | Change |
|---|---|---|---|
| Revenues | 28,066.18 | 31,928.73 | 13.8 % |
| Gross Income | (403.39) | 9,385.69 | 2426.7 % |
| Operating Income | (1039.90) | 8,551.73 | 922.4 % |
| Net Income after deducting Mudaraba Instrument profit | (3310.02) | 3,718.00 | 212.3 % |
| Average Shares | 4,166.59 | 4,166.59 | - |
| EPS after deducting Mudaraba Instrument profit (Riyals) | (0.79) | 0.89 | 212.3 % |
This was driven by the enactment of regulatory and financial reforms in the electricity sector in November 2020, which boosted operating revenue and cut financing costs.
The company also cited lower financing costs due to lower overall debt levels following the conversion of the government loans as part of the Mudarabah instrument signed in November 2020.
Deducting SAR 3.799 billion in dividend pertaining to the company’s agreement with the government, SEC would have reported SAR 3.718 billion in profit for H1 2021.
| Item | Q2 2020 | Q2 2021 | Change |
|---|---|---|---|
| Revenues | 16,668.46 | 18,580.36 | 11.5 % |
| Gross Income | 788.96 | 6,457.61 | 718.5 % |
| Operating Income | 374.58 | 6,403.89 | 1609.6 % |
| Net Income | (868.56) | 3,917.98 | 551.1 % |
| Average Shares | 4,166.59 | 4,166.59 | - |
| EPS (Riyals) | (0.21) | 0.94 | 551.1 % |
| Item | Q1 2021 | Q2 2021 | Change |
|---|---|---|---|
| Revenues | 13,348.37 | 18,580.36 | 39.2 % |
| Gross Income | 2,928.08 | 6,457.61 | 120.5 % |
| Operating Income | 2,147.85 | 6,403.89 | 198.2 % |
| Net Income before deducting Mudaraba Instrument profit | 1,689.13 | 5,828.08 | 245.0 % |
| Net Income | (199.98) | 3,917.98 | 2059.2 % |
| Average Shares | 4,166.59 | 4,166.59 | - |
| EPS before deducting Mudaraba Instrument profit (Riyals) | 0.41 | 1.39 | 239.0 % |
| EPS (Riyals) | (0.05) | 0.94 | 2059.2 % |
The second-quarter net profit stood at SAR 5.82 billion, versus net loss of SAR 869 million in Q2 2020, backed by higher operating revenue and growth in electricity sales.
On a sequential basis, net profit increased by more than three-fold.
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