MARAFIQ Q1 2025 profit rises 73% to SAR 117.9M

Power and Water Utility Company for Jubail and Yanbu (MARAFIQ) reported a net profit of SAR 117.9 million for the first quarter of 2025, a 73% growth from SAR 68.3 million in the year-earlier period.

The earnings were driven by increased sales volumes across all core segments, a 10.72% year-on-year (YoY) decline in financing costs to SAR 28.76 million, and a 181.51% reversal in expected credit loss provisions on trade receivables amounting to SAR 15.01 million.

Other operating income more than doubled to SAR 39.69 million, supported by success fee collections tied to the Al-Hair independent sewage treatment plant project. Zakat and income tax provisions also declined 34.61% YoY to SAR 3.14 million.

However, the annual profit hike was offset by a 20.44% rise in production-related fuel costs to SAR 89.19 million, despite using some 2024-priced fuel. This is in addition to a 15.79% increase in purchased power and water costs, which reached SAR 31.93 million, incurred through the company’s subsidiary, Marafiq Water and Power Supply Co. (TAWREED).

On a sequential basis, MARAFIQ turned to profit from losses of SAR 370.73 million in Q4 2024, backed by the absence of a SAR 511 million provision for expected credit losses on trade receivables booked in the prior quarter, along with a 3.65% quarterly drop in financing costs for Q1 2025.

This was tempered by a 15.37% increase in production fuel costs to SAR 69.99 million, a 14.77% decline in other operating income to SAR 13.60 million, and a 143.25% surge in Zakat and income tax expenses to SAR 19.62 million.

Total shareholders’ equity, no minority interest, fell marginally to SAR 5.31 billion by the end of March 31, 2025, compared to SAR 5.35 billion a year earlier.

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