The Saudi Electricity Company (SEC) has unveiled its financial performance for 2024, highlighting a total operating revenue of SR88.7 billion ($23.6 billion), an 18% increase from the previous year’s SR75.3 billion ($20.1 billion), according to the Associated Press.
This growth is attributed to sustained electricity demand, enhanced power generation, the expansion of regulated asset bases, and higher weighted average cost of capital returns. Revenues from project development, including power plants and transmission lines, also boosted growth.
SEC reported a net profit of SR6.9 billion ($1.8 billion) for 2024, down from SR10.2 billion ($2.7 billion) the previous year, due to a one-time expense of SR5.7 billion ($1.5 billion) related to settling historical disputes. Without this expense, the adjusted net profit rose to SR12.1 billion ($3.2 billion), marking an 8.9% increase.
Key Factors Driving Growth
- Higher revenue requirements in 2024
- 10% expansion in regulated asset bases to SR231 billion ($61.6 billion)
- Increased power generation revenues
- Growing customer base
- Improved operational efficiency
- Lower maintenance and operating costs
- Higher net other income
- Improved collections
- Reduced zakat provisions
- Increased equity-accounted earnings from independent power plants
SEC Acting CEO Eng. Khalid Al-Ghamdi emphasized the company’s commitment to growth, operational excellence, and strategic investment aligned with Saudi Vision 2030. He noted record revenues and significant capital investments, underlining SEC’s role in transforming the power sector.
Investment and Infrastructure Initiatives
SEC’s capital expenditures reached a record SR60 billion ($16 billion) in 2024, a 44% increase from 2023. Investments focused on expanding power infrastructure, enhancing smart grids, improving generation efficiency, and upgrading service reliability.
The company connected 6.8 GW of renewable capacity to the grid and is developing projects totaling 27.3 GW, with tenders for an additional 33.2 GW of renewable energy projects. SEC also launched Saudi Arabia’s first battery energy storage system with a 500 MW capacity in Bisha and is advancing five more storage projects totaling 2,500 MW.
SEC is expanding regional grid interconnections, including a 3 GW project with Egypt, and exploring new connections with Italy, Greece, and India. Customer satisfaction improved to 82.3%, with better service quality and reliability. Key service metrics also showed improvement.
To support future growth, SEC secured SR57.2 billion ($15.2 billion) in financing through various channels, including sukuk issuances and loans. Reflecting its robust performance, Moody’s and Fitch upgraded SEC’s credit ratings.
