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Saudi Electricity Company Announces 2023 Financial Results 

The company reported operating revenues of SAR75.3 billion, a 4.5% increase over the SAR72.0 billion in the previous year. (SEC)
The company reported operating revenues of SAR75.3 billion, a 4.5% increase over the SAR72.0 billion in the previous year. (SEC)
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Saudi Electricity Company Announces 2023 Financial Results 

The company reported operating revenues of SAR75.3 billion, a 4.5% increase over the SAR72.0 billion in the previous year. (SEC)
The company reported operating revenues of SAR75.3 billion, a 4.5% increase over the SAR72.0 billion in the previous year. (SEC)

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.

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Boeing Reports $11.8 bln Loss, Largest since 2020

The Boeing logo is seen on the side of a Boeing 737 MAX at the Farnborough International Airshow, in Farnborough, Britain, July 20, 2022. REUTERS/Peter Cziborra/File Photo
The Boeing logo is seen on the side of a Boeing 737 MAX at the Farnborough International Airshow, in Farnborough, Britain, July 20, 2022. REUTERS/Peter Cziborra/File Photo
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Boeing Reports $11.8 bln Loss, Largest since 2020

The Boeing logo is seen on the side of a Boeing 737 MAX at the Farnborough International Airshow, in Farnborough, Britain, July 20, 2022. REUTERS/Peter Cziborra/File Photo
The Boeing logo is seen on the side of a Boeing 737 MAX at the Farnborough International Airshow, in Farnborough, Britain, July 20, 2022. REUTERS/Peter Cziborra/File Photo

28 (Reuters) - Boeing on Tuesday reported an annual loss of $11.83 billion, its largest since 2020, as it grappled with problems at its commercial and defense units and the fallout from a crippling strike by US West Coast factory workers.

The loss demonstrates the challenges facing CEO Kelly Ortberg in turning around the planemaker as it cedes more ground to rival Airbus in the delivery race and comes under the crosshairs of regulators and customers following a series of missteps.

Ortberg, who took the reins of the planemaker in August, however, said the company was making progress on restoring stability to its struggling production lines after a harrowing mid-air accident in 2024 raised concerns about the safety of its jets.

Boeing's fourth-quarter results included "disappointing" charges in several fixed-price defense programs, Ortberg said, while adding that the company was "now more proactive and clear-eyed on the risks" to the programs, Reuters reported.

The company's Defense, Space & Security business has lost $3.15 billion in the first nine months of 2024.

The planemaker last week flagged an overall fourth-quarter loss of about $4 billion, nearly triple the size expected by Wall Street.

Ortberg reiterated the company's four-part plan to turn the business around including undertaking a "multi-year journey" to fix Boeing's culture, "perhaps the most important change we need to make."

After banking record-high profits in the 2010s, Boeing has bled more than $20 billion since 2019 after two fatal crashes of its best-selling 737 MAX jet triggered production quality and safety concerns and worries that it had misled regulators during the plane's certification process.

The COVID-19 pandemic further squeezed the company, while the mid-air panel blowout on a nearly new 737 MAX in early 2024 dragged Boeing into another crisis.

"We have completed deep dives on all of our challenging fixed-price development programs," Ortberg said on Tuesday in a letter to employees.

Ortberg added Boeing has made progress with its supply chain and has returned to an output rate of five 787 jets per month at the end of 2024, despite delays in areas like seats.

Boeing's commercial planes division, now focused on getting three of its models certified, has a good handle on fixing a thrust link issue uncovered on its 777X widebody, which resumed flight tests earlier this month, he added.

Ortberg was guarded in his message about the status of solving problems with anti-icing systems on the 737-7 and -10 models. The company is "still working through the testing phase focusing on finalization of the anti-icing design solution," he said.

The company continues to invest in "core businesses while streamlining our portfolio in areas that are not core to our future," he said.