The losses of Saudi Electricity, which generates and distributes electricity in all regions of the Kingdom, decreased to 1.3 billion riyals (after deducting the dividends from the Mudaraba instrument) by the end of the first quarter of 2024, compared to losses of 1.4 billion riyals during the same period last year.
The company’s profits rose to 897 million riyals before deducting the Mudaraba instrument distributions by the end of the first quarter of 2024, compared to profits of 480 million riyals achieved during the same period in 2023.
The company said that the reason for the decrease in losses during the current quarter compared to the same quarter of the previous year is due to:
1) The increase in required revenue recognized during the current quarter as a result of the increase in the regulatory rate of return weighted for the cost of capital (regulatory return), the growth of the regulated asset base, the growth in demand for electric energy, and the continued growth in the subscriber base.
2) Achieving new revenues related to the development of projects to establish stations and transmission lines for the benefit of the company’s clients.
3) Dawiyat Company’s revenues increased as a result of the growth in subscribers to fiber optic services to homes.
4) Low financing costs.
5) Increased profits from the company’s share in investments registered using the equity method.
6) Decrease in the provision for receivables for electricity consumers as a result of improved collection and seasonality of sales.
in contrast Operation and maintenance expenses increased due to business and asset growth and higher loads.
– Increase in general and administrative expenses.
– Increased zakat allocation.
The company attributed the reason for the decrease in losses during the current quarter compared to the previous quarter to:
– Decrease in the company’s operating costs as a result of the decrease in quantities sold for the current quarter
– The increase in required revenue recognized during the current quarter, which is attributed to the increase in regulatory returns and the growth of the regulatory asset base.
in contrast Revenues decreased for the current quarter compared to the previous quarter as a result of the decrease in quantities sold due to the seasonality of sales. This was offset by the increase in required revenues recognized during the current quarter, which is attributed to the high regulatory return and the growth of the regulated asset base.
additional information:
The company said that shareholders’ equity (no minority rights – and the discount for the Mudaraba instrument) at the end of the period amounted to 89,597 million riyals, compared to 89,562 million riyals as at the end of the similar period of the previous year.
Statement of the type of auditor’s report: Unmodified opinion.
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