The Saudi Electricity Company (SEC) has announced its financial results for 2024, reporting total operating revenues of SR88.7bn ($23.6bn), marking an 18 per cent increase from SR75.3bn ($20.1bn) in the previous year.
This performance reflects sustained demand for electricity, increased power generation, expansion of regulated asset bases, and a higher weighted average cost of capital (WACC) return.
Revenues from project development and management, including the construction of power plants and transmission lines for clients, also contributed to the company’s overall growth.
Saudi Electricity Company results
SEC posted a net profit of SR6.9bn ($1.8bn) for 2024, compared to SR10.2bn ($2.7bn) in the previous year.
The decline is attributed to a one-time expense of SR5.7bn ($1.5bn), resulting from the final settlement of long-standing disputed amounts related to historical discrepancies in fuel quantities, pricing, handling costs, and electricity tariffs.
Excluding this non-recurring expense, the company’s adjusted net profit stood at SR12.1bn ($3.2bn), up from SR11.1bn ($3bn) in 2023, representing an 8.9 per cent increase.
This improvement was driven by key factors, including:
- Higher recognised revenue requirements in 2024
- A 10 per cent expansion in regulated asset bases to SR231bn ($61.6bn)
- Increased power generation revenues
- A growing customer base
- Enhanced 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 said: “2024 marks a new phase of accelerated growth, operational excellence, and strategic investment in the future. We have achieved record-breaking revenues and executed the largest capital investments in SEC’s history.
“As we advance our strategic initiatives, we remain committed to supporting the unprecedented transformation of the power sector in line with Saudi Vision 2030.
“This transformation presents exceptional growth opportunities, underpinned by a robust regulatory framework and SEC’s strong financial and strategic position.
“We are dedicated to enhancing energy security, supporting Saudi Arabia’s transition into a regional hub for clean energy, and delivering reliable, high-quality electricity services.
“Our focus remains on accelerating innovation, advancing digital transformation, and improving operational efficiency, all while ensuring an outstanding customer experience.”
SEC’s capital expenditures also surged to an all-time high of SR60bn ($16bn) in 2024, reflecting a 44 per cent increase from 2023.
These investments were directed toward power infrastructure expansion, smart grid enhancements, generation efficiency improvements, and service reliability upgrades.
The company also continued its commitment to renewable energy integration, with 6.8 GW of renewable capacity connected to the grid by year-end.
SEC is also developing new projects with a combined capacity of 27.3 GW and has initiated tenders for an additional 33.2 GW of renewable energy projects.
To enhance grid stability and efficiency, SEC commissioned Saudi Arabia’s first battery energy storage system (BESS) in Bisha, with a capacity of 500 MW, and advanced the development of five additional storage projects totaling 2,500 MW.
The company also continued expanding regional grid interconnections, including the 3 GW Saudi-Egypt interconnection project, and feasibility studies for new interconnections with Italy, Greece, and India.
Customer satisfaction reached 82.3 per cent, with improvements in service quality and reliability. The System Average Interruption Duration Index (SAIDI) improved by 17 per cent, while the System Average Interruption Frequency Index (SAIFI) saw a 19 per cent reduction.
The average service connection time for new customers decreased by 9 per cent.
SEC also advanced its digital infrastructure by automating all distribution substations in the holy sites and integrating the Makkah Distribution Control Centre with the fibre optic network, ensuring uninterrupted service, particularly during the Hajj season.
SEC said it maintained a strong financial position, securing SR57.2bn ($15.2bn) in financing throughout the year through various instruments, including sukuk issuances, local and international loans, and export credit agency-backed facilities to support its long-term growth strategy.
SEC added: “Reflecting its solid performance and strategic outlook, Moody’s upgraded SEC’s credit rating from A1 to Aa3 with a stable outlook, while Fitch raised its rating from A to A+, aligning SEC’s credit profile with Saudi Arabia’s sovereign rating.
“These upgrades further reinforce SEC’s position among the world’s leading power utilities”.
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