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Saudi Electricity’s profits rise by 235% in third quarter

Saudi Electricity's profits

Saudi Electricity’s profits, in the third quarter of this year, increased by 235%, compared to the same quarter of last year.

The company attributed this to the implementation of the regulatory and financial reforms of the electricity sector in the kingdom approved in November 2020. However, Earnings came less than analysts’ expectations, the company said.

According to the company’s data, the net profit came 7.4 billion riyals, an increase of 235% on an annual basis. Analysts expected a profit of 8.4 billion riyals, according to Bloomberg.

The Saudi Electricity Company is responsible for the generation, transmission and distribution of electricity in the kingdom through its wholly or partly owned companies.

Saudi Electricity’s profits

The company said in a statement on the Saudi stock market (Tadawul) website that the improvement in profitability will enhance its financial ability to pump new investments to raise generation efficiency. The profits will also enable the production of electricity from renewable energy sources, with the aim of achieving the goals of the optimal energy mix for electricity production, the company said.

The company mentioned the most important reasons for the growth of third-quarter profits, which are: the abolition of the government fee as of the beginning of the year, instead of a fee of 4.96 billion riyals in the same quarter of 2020; and a decrease in the financing burdens charged to the income statement.

Energy sales and electric service delivery revenues grew, as the company’s revenues increased to more than 22 billion riyals, a growth of 7.4% on an annual basis, and 16.3% on a quarterly basis.

The results of the first nine months of this year showed that the company turned into a profit of 15.269 billion riyals, compared to losses of 1.6 billion riyals for the same period last year.

In a related context, the company decided to disburse the compensation to more than 27,000 clients, with a financial value estimated at 3 million riyals.

This is due to the damage caused by the electricity network due to power outages and damage to the private devices of citizens. The decision was taken by the Water and Electricity Regulatory Authority, which explained the reasons that made it take the sudden decision.

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