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Saudi Electricity Company Reports 22% Net Profit Growth in Q2 2025

Revenue for Q2 grew by 24% to reach SAR27.7 billion - SPA
Revenue for Q2 grew by 24% to reach SAR27.7 billion - SPA
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Saudi Electricity Company Reports 22% Net Profit Growth in Q2 2025

Revenue for Q2 grew by 24% to reach SAR27.7 billion - SPA
Revenue for Q2 grew by 24% to reach SAR27.7 billion - SPA

Saudi Electricity Company (SEC) continued to deliver robust financial and operational performance in the second quarter and first half of 2025, said an SEC press release issued on Sunday.

Revenue for Q2 grew by 24% to reach SAR27.7 billion, while gross profit rose by 42% to SAR7.4 billion. Operating profit increased by 21% to SAR6.8 billion, and net profit reached SAR5.3 billion—marking a 22% year-on-year increase.

For the first half of 2025, SEC reported a revenue growth of 23%, totalling SAR47.2 billion. Gross profit rose by 40% to SAR10.2 billion, operating profit increased by 20% to SAR9.1 billion, and net profit grew by 19% to SAR6.3 billion compared to the same period in 2024.

According to the release, this strong financial performance was primarily driven by higher allowed revenue due to the growth of the regulated asset base of the electricity network and increased electricity production revenues in response to rising energy demand.

These gains were partially offset by higher operating and maintenance expenses due to network expansion, asset growth, and increased loads, as well as a rise in provisions for accounts receivable and a decrease in other income.

SEC noted that the expansion of its regulated asset base reflects the continued growth in its transmission and distribution networks to meet increasing electricity demand, support renewable energy integration, and advance energy storage projects. The company is also maintaining strategic investments in digital transformation and operational excellence initiatives.

Acting CEO of SEC Engineer Khalid Al-Ghamdi stated: “Our positive performance in the first half of 2025 reflects the company’s continued growth across its business portfolio and asset base. It aligns with our strategy to provide reliable and secure electricity across the Kingdom, improve service quality for our customers, and advance sustainability and operational excellence. We are committed to further strengthening our position and leveraging the significant opportunities emerging from the energy transition in Saudi Arabia, in line with the ambitions of Vision 2030—enabled by the dedication of our talented national workforce and our unwavering commitment to serving the nation.”

As of the end of H1 2025, the renewable energy capacity connected to the grid exceeded 9.2 GW, and the company successfully commissioned 8.0 GWh of battery energy storage systems across four sites: Bisha, Jazan, Khamis Mushait, and Najran.

SEC is currently developing an additional 14 GWh of storage capacity, expected to be operational and grid-connected next year, further strengthening grid reliability and renewable energy integration.

Reaffirming its commitment to embedding sustainability throughout its operations and enhancing its ESG practices, SEC achieved a significant leap in its Environmental, Social, and Governance (ESG) rating from S&P Global, earning 65 out of 100 in 2025. This marks a 30% increase over 2024 and an 85% improvement over 2023.

This accomplishment places SEC at the top of all companies in Saudi Arabia and as the regional leader in the energy sector across the Middle East and North Africa, surpassing the global utilities sector average by 66%, reinforcing its global leadership in sustainability performance.

Electricity demand continued to rise in H1 2025, with peak load growing by 3% to 75.1 GW, and total electricity consumption increasing by 10% to reach 160.5 terawatt-hours.

SEC successfully met record-breaking peak loads in Makkah, Madinah, and the holy sites during the 1446 AH Hajj season without a single service interruption—thanks to the company’s full mobilization of resources to serve pilgrims and ensure their comfort.
The company also made strong progress in service expansion and infrastructure development. SEC connected around 110,000 new customers, bringing the total customer base to 11.4 million.

The length of the distribution network grew by 6% to exceed 827,000 circuit kilometers, while transmission and fiber optic networks grew by 6% and 9%, respectively, reaching 103,800 and 101,000 circuit kilometers.

As part of its efforts to enhance service reliability and customer experience, SEC continued digital infrastructure upgrades and automated distribution substations, connecting them to control centers via fiber optic networks.

The automation rate of distribution substations reached 38.4%, and customer satisfaction rose to 85.8%, underscoring improvements in service quality and communication effectiveness.

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Business

IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.

Business

Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.

Business

Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.