The Saudi Electricity Company (SEC) issued on Wednesday the financial results for 2023. The company reported operating revenues of SAR75.3 billion, a 4.5% increase over the SAR72.0 billion in the previous year.
The company attributed the revenue increase to several factors, including a 5% rise in electricity demand in 2023, continued growth of subscriber base, revenue increase in the transmission system, and Dawiyat Integrated Telecom Company (fully owned by SEC) revenue growth.
Additional revenue came from developing substations and transmission lines for the company customers.
The results show a net profit of SAR10.2 billion in 2023, down from SAR15.1 billion the previous year. The company cited higher financing costs due to global interest rates and additional capital project funding, non-recurring expenses, increased operations and maintenance costs due to growing business and operating assets, and costs related to carrying out substation and transmission projects as reasons for the decrease.
The decline in net profit was partially mitigated by higher operating revenues and lower bad debt provision due to improved collection activities in 2023 compared to the previous year.
Commenting on the results, SEC CEO Eng. Khaled bin Hamad AlGnoon stated: "We strive to be strategic partners in achieving progress and prosperity in the Kingdom's electricity sector. We are investing in the present and future to achieve sustainable development and meet the needs of investors, subscribers, and the communities we serve."
AlGnoon highlighted the 2023 company achievements, including significant growth in power generation capacity, network expansion, and investments in new ventures like fiber optics and electric vehicle infrastructure.
These initiatives, he emphasized, aim to improve the quality of services and reliability, and support future growth opportunities.
He acknowledged the crucial role of the government and its ongoing support in the drive to overcome challenges and improve services for subscribers.
