Saudi Electricity sees losses widen to $209m in Q1

Gulf's largest listed utility sees bigger losses than after it is forced to purchase power.
Saudi Electricity sees losses widen to $209m in Q1
Q1 LOSS: Firm says loss is due to increase in power purchases to meet energy demand. (Getty Images)
By Reuters
Tue 20 Apr 2010 11:43 AM

Saudi Electricity Co saw losses widen to SR782 million ($209 million) in the first quarter, more than expected, as it was forced to purchase power from external providers.

The company, the Gulf's largest listed utility, posted a net loss of SR771 million in the first quarter last year, it said in a bourse statement on Tuesday.

"The widening loss is due to the increase in purchased energy from independent producers in order to meet the increased energy demands, as well as the increased costs resulting from new projects," the firm said.

Four analysts surveyed by Reuters expected the firm to make losses of around SR768.9 million.

The operational loss was SR888 million, down from SR897 million a year earlier.

Saudi Electricity is planning to raise up to $1.87 billion from a sukuk issuae in May to fund expansion.

The firm is executing projects to add 5,105 megawatts of new power capacity by 2012 as demand for power in Saudi Arabia is growing at a rate of 8 percent annually.

Saudi Electricity shares closed at SR11.10 on Monday. (Reuters)

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