Gulf's largest utility firm says Q1 net loss more than doubled

Saudi Electricity Co posts losses of more than $517m in the first three months of 2015
Gulf's largest utility firm says Q1 net loss more than doubled
(Getty Images - for illustrative purposes only)
By Reuters
Tue 21 Apr 2015 06:50 PM

Saudi Electricity Co (SEC), the Gulf's largest utility firm, reported its net loss for the first quarter more than doubled on Tuesday.

It lost 1.94 billion riyals ($517.4 million) during the three months to March 31, compared to a loss of 913 million riyals during the corresponding period of 2014, it said in a bourse statement.

This was worse than NCB Capital's forecast of a net loss of 1.27 billion riyals in the quarter.

The utility cited the costs of implementing an order from the electricity regulator on power usage by top manufacturers, as well as other expenses, for the decline in earnings. It did not elaborate.

Saudi companies issue brief earnings statements early in the reporting period before publishing more detailed results later.

During the first quarter, the firm paid 545 million riyals to employees in bonuses as part of a scheme to celebrate the Saudi royal succession.

SEC's results are highly seasonal because of the big swing between power demand in winter and in summer, when high temperatures lead most homes and businesses to rely on extensive air conditioning.

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