These losses include dividends deducted from the company’s earnings as profit for the speculative instrument in the amount of 1.9 billion riyals ($504 million), so the company’s earnings for the first quarter before deducting dividends for the speculative instrument amounted to 480 million riyals ($128 million). million), compared to 1.5 billion riyals ($405 million). They were reached during the same period in 2022.
Regarding the increase in losses in the current quarter compared to the same quarter of the previous year, Saudi Electricity said that the reason is due to the decrease in sales of electric power by 439 million riyals ( $117 million) due to the decrease in the amount of energy sold, the change in sales mix and the increase in operating and maintenance costs and combined financing charges of 1.2 billion riyals ($331 million).
This was offset by an increase in required revenue recognized in the current quarter of 250 million riyals ($66.6 million) compared to the same quarter of the previous year, as well as an increase in other revenue and expenses and a decrease in expenses. provision for electricity consumers and other receivables.
The company said the change in purchased energy and fuel costs, compared to the same period last year, reflects the implementation of energy transfer agreements, the supply agreement in bulk energy and the transfer of fuel supply agreements from the Saudi Electricity Company to the Saudi Energy Purchase Company, effective July 2022.
The company added that according to the wholesale supply agreement, the wholesale supply rate is lower during the winter season (January to April and October to December) and higher during the winter season. summer (May to September), which leads to variable tariffs for energy purchased during the year, and vice versa. Therefore, the rate at which electricity is sold to consumers as well as revenues from power transfer agreements do not vary seasonally. To align purchased energy costs with revenues, purchased energy costs are calculated based on the average wholesale supply rate, which is calculated on an annual basis.
The company also attributed the decline in net profit for the current quarter compared to the previous quarter mainly to the decrease in the company’s operating income following the decrease in the quantities sold due to the seasonality of sales in addition to the increase in fresh financing.
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