Saudi Electricity loses SAR 1.9B after Mudaraba in 2024, SAR 7.5B in Q4 on non-recurring expenses

05/03/2025 Argaam Exclusive

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Saudi Electricity Co. (SEC) reported a net loss, after deducting the payments of Mudaraba coupon, of SAR 1.9 billion in 2024, versus a net profit of SAR 2.6 billion a year earlier.

 

Before Mudaraba coupon payments, SEC’s annual profit declined to SAR 6.9 billion, from SAR 10.2 billion in 2023.



Financials (Million Riyal)

Item 2023 2024 Change‬
Revenues 75,329.67 88,665.64 17.7 %
Gross Income 15,521.38 17,486.27 12.7 %
Operating Income 14,119.15 16,126.82 14.2 %
Net Income before deducting Mudaraba Instrument profit 10,249.30 6,866.94 (33.0 %)
Net Income after deducting Mudaraba Instrument profit 2,587.92 (1925.10) (174.4 %)
Average Shares 4,166.59 4,166.59 -
EPS before deducting Mudaraba Instrument profit (Riyals) 2.46 1.65 (33.0 %)
Earnings Per Share before unusual items (Riyals) 0.82 0.79 (4.2 %)
EPS after deducting Mudaraba Instrument profit (Riyal) 0.62 (0.46) (174.4 %)
This was mainly due to the recognition of non-recurring expenses based on the decision of the Ministerial Committee for the Restructuring of the Electricity Sector and SEC (the Ministerial Committee) to approve a final settlement of historically disputed amounts related to technical differences in fuel quantities and prices, handling costs, and electrical energy.
 
The company also posted higher net financing charges in the income statement reflecting increased financing raised in 2024 to fund SEC expanding capital expenditures and enhance its business growth.
 
However, this was offset by higher revenues due to an increase in required revenue recognized during the current year, driven by a rise in the regulated weighted average cost of capital (Regulatory WACC) and a growing regulated asset base (RAB). This was in addition to strong demand for electric power, increase in electricity production revenue by SEC and continued growth in subscriber base. The company also posted an increase in revenue from development projects to construct substations and transmission lines on behalf of SEC’s customers.
 
Before one-offs, 2024 net earnings reached SAR 12.08 billion, compared with SAR 11.09 billion in 2023.


Current Quarter Comparison (Million Riyal)

Compared With The
Item Q4 2023 Q4 2024 Change‬
Revenues 18,433.84 22,112.30 20.0 %
Gross Income (36.83) 1,420.97 3958.1 %
Operating Income (882.55) 1,199.96 236.0 %
Net Income before deducting Mudaraba Instrument profit (91.21) (5272.90) (5,681.2 %)
Net Income (2022.29) (7482.92) (270.0 %)
Average Shares 4,166.59 4,166.59 -
EPS before deducting Mudaraba Instrument profit (Riyals) (0.02) (1.27) (5,653.2 %)
Earnings Per Share before unusual items (Riyal) (0.49) (0.43) 11.2 %
EPS (Riyal) (0.49) (1.80) (270.0 %)

Shareholders' equity, no minority interest and after the payment of Mudaraba coupon, totaled SAR 77.8 billion by the end of 2024, compared with SAAR 88.4 billion a year.

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