Saudi Electricity Co. (SEC) narrowed Q1 2024 net losses to SAR 1.3 billion (after deducting the payments of Mudaraba coupon) from SAR 1.4 billion in the year-earlier period.
Before deducting the Mudaraba coupon, Q1 2024 earnings reached SAR 897 billion, up from SAR 480 billion in 2022.
| Item | Q1 2023 | Q1 2024 | Change |
|---|---|---|---|
| Revenues | 13,379.21 | 15,858.49 | 18.5 % |
| Gross Income | 1,759.78 | 2,140.45 | 21.6 % |
| Operating Income | 1,403.31 | 1,748.72 | 24.6 % |
| Net Income before deducting Mudaraba Instrument profit | 479.74 | 897.18 | 87.0 % |
| Net Income | (1409.36) | (1288.82) | 8.6 % |
| Average Shares | 4,166.59 | 4,166.59 | - |
| EPS before deducting Mudaraba Instrument profit (Riyals) | 0.12 | 0.22 | 86.9 % |
| EPS (Riyals) | (0.34) | (0.31) | 8.6 % |
| Item | Q4 2023 | Q1 2024 | Change |
|---|---|---|---|
| Revenues | 18,433.84 | 15,858.49 | (14.0 %) |
| Gross Income | (36.83) | 2,140.45 | 5911.5 % |
| Operating Income | (882.55) | 1,748.72 | 298.1 % |
| Net Income before deducting Mudaraba Instrument profit | (91.21) | 897.18 | 1083.7 % |
| Net Income | (2022.29) | (1288.82) | 36.3 % |
| Average Shares | 4,166.59 | 4,166.59 | - |
| EPS before deducting Mudaraba Instrument profit (Riyals) | (0.02) | 0.22 | 1078.6 % |
| EPS (Riyals) | (0.49) | (0.31) | 36.3 % |
The decline in losses was driven by an increase in required revenue recognized during the current quarter, which was due to an increase in regulatory weighted average cost of capital (WACC) and a growing regulated asset portfolio.
This is in addition to new revenue from development projects to build substations and transmission lines for SEC customers, as well as higher revenue from Dawiyat Co. due to a growing subscriber base for FTTH connections.
The company also reported lower financing costs, a higher SEC’s share of profits on equity accounted investees, and lower provision for receivables from consumption of electricity reflecting improved collections and sales seasonality.
The aforementioned items have been partially offset by higher operating and maintenance costs due to growing business and operating assets and higher loads, higher general and administrative expenses, and higher Zakat provisions.
Sequentially, the utility provider narrowed losses in Q1 2024 from SAR 2.03 million in Q4 2023.
Total shareholders’ equity, no minority interest and after deducting Sukuk, reached SAR 89.59 billion as of March 31, 2024, compared to SAR 89.56 billion a year before.
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