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Sun 27 Oct 2013 07:27 PM

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Saudi utility posts 1% fall in Q3 net profit

Saudi Electricity Company says income dropped to $761m as power generation capacity rises

Saudi utility posts 1% fall in Q3 net profit
electric pole, electrical energy, GCC energy, power generation

Saudi Electricity Company posted a 1 percent fall in third-quarter net profit, missing analysts' forecasts, as its power generation capacity increased.

Profit fell to SR2.853bn ($761 million) in the three months ended September 30, from SR2.875bn in the same period a year earlier, the utility said in a bourse statement on Sunday.

Two analysts polled by Reuters had forecast SEC would have profits of more than SR2.9bn.

Operational income dipped 3 percent to SR2.74bn.

SEC's long-serving chief executive, Ali bin Saleh Al-Barrak, resigned in August and was replaced with Ziad bin Mohammed al-Shiha, who had served as a manager at state-owned oil giant Saudi Aramcoand called for efforts to make power generation more efficient.

Also in August, the company signed a contract with South Korea's Hyundai Heavy Industries Co Ltd. (HHI) for construction of a SR12.2bn power plant in Shuqaiq.

SEC's results are highly seasonal due to the wide variation between summer and winter electricity demand.

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