Saudi Electricity Co posts 2% rise in Q2 profit

State utility says higher energy sales drive net income in second quarter of 2012
Saudi Electricity Co posts 2% rise in Q2 profit
Electricity pylon
By Reuters
Wed 18 Jul 2012 05:56 PM

Saudi Electricity Co reported a two percent rise in second-quarter profit on Wednesday, due to higher energy sales.

The utility had net profit of SR1.36bn ($363m), up from SR1.34bn in the prior-year period, it said in a bourse statement.

Electricity in the world's top oil exporter is heavily subsidised, contributing to soaring power demand among both residential and industrial or business users.

SEC results are heavily influenced by the seasons and its earnings improve during the hotter weather in the second and third quarters when higher air conditioning drives increased electricity consumption.

The utility posted a first quarter loss of SR583m in April.

SEC's installed capacity of 50,000 megawatts needs to rise to 80,000 megawatts by 2020, officials have said, at an estimated cost of SR400bn ($106.6bn).

The company said last month it would buy back a $1.3bn sukuk issued in 2007.

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