In its statement to the Saudi Stock Exchange on Wednesday, the company attributed the drop in profits to a drop in electricity sales of 439 million riyals and an increase in operating and maintenance costs and combined financing charges of 1.2 billion riyals.
The company added that the evolution of the costs of energy and fuel purchased, compared to the same period of the previous year, reflects the implementation of the energy transfer agreements, the agreement of bulk energy supply and the transfer of fuel supply agreements from the Saudi Electricity Company to the Saudi Energy Purchase Company, effective July 2022.
On a quarterly basis, profits at the Saudi Electricity Company fell by 72.4% compared to the last quarter of 2022, in which net profit was around 1.7 billion riyals.
The company said the decline in earnings on a quarterly basis was also due to sales seasonality in addition to higher funding costs.
The company said in its statement that the net loss attributable to ordinary shares for the first quarter of this year (after deducting the speculation tool’s dividends of around 1.9 billion riyals) recorded around 1.4 billion. of riyals, against a net loss of 372 million. riyals for the same period of the previous year.
It should be noted that the Saudi government deducts every 3 months an amount of 1.9 billion riyals from the net profit of the company, based on an agreement to transfer the net financial obligations owed to the state by the company, amounting to 167.9 billion riyals, in a financial instrument within equity, unsecured, perpetual, repayable at an annual profit margin of 4.5%, payable when a cash dividend is decided on the Ordinary Shares.
And in November 2020, a Royal Order was issued approving the Saudi Electricity Company net government dues settlement, as part of a government approach to restructure the electricity sector in the Kingdom.
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