EIC subsidiary signs SAR 1.4B deal with SEC

Logo of Electrical Industries Co. (EIC)

Electrical Industries Co.’s (EIC) subsidiary, Saudi Power Transformers Co. (SPTC), signed today, Sept. 17, a contract with Saudi Electricity Co. (SEC) to localize and supply extra-high voltage and high-voltage transformers and reactors.

In a statement to Tadawul, EIC said the 84-month contract is valued at SAR 1.41 billion, excluding VAT.

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Under the contract terms, SEC reserves the right to raise the contract value by up to 40% of the base amount, while being mandated to implement no less than 70% of the contractual value.

If the top-up option is exercised, the contractual value could reach nearly SAR 2 billion.

EIC expects this transaction to have a positive financial impact on its results during 2027-2033.

The TASI-listed company also noted that SPTC is currently working on expanding its factory, a project announced on May 15, to support growth plans and meet expected demand under this deal and future ones. The expansion project is estimated at SAR 192 million.