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Mon 17 Oct 2011 07:35 PM

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Saudi Electricity Co sees Q3 net profit fall by 6%

State-controlled utility say bottom line affected by higher costs of purchased energy

Saudi Electricity Co sees Q3 net profit fall by 6%

State-controlled Saudi Electricity Co (SEC) said on Monday it posted a 6 percent fall in net profit in the third quarter due to higher costs of purchased energy.

SEC made a net profit of SR2.2bn ($587m) for the third quarter, compared with SR2.3bn in the same period a year earlier.

Analysts surveyed by Reuters expected the firm to post on average SR2.65bn.

"The reason for the decline in the third quarter net profit compared to the same period a year earlier is mainly the rise in costs of the consumption and purchase of energy," the statement said.

Operational profit for the third quarter declined by 3 percent to SR2.125bn from SR2.195bn in the third
quarter a year ago.

Saudi Arabia, OPEC's biggest oil exporter, is struggling to keep up with rising power demand, which is rising 7 to 8 percent annually amid a growing population of over 27 million.

On Sunday, SEC signed a SR5.4bn contract with an unnamed Saudi company to build 1,200 megawatts of power generation capacity at a plant in Riyadh.

The company, which has an installed capacity of 50,000 megawatts, plans to boost its capacity to at least 80,000 megawatts by 2020.

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