Saudi Electricity Company Reports 22% Net Profit Growth in Q2 2025

11/08/2025 04:25 AST

Saudi Electricity Company (SEC) continued to deliver robust financial and operational performance in the second quarter and first half of 2025, said an SEC press release issued on Sunday.

Revenue for Q2 grew by 24% to reach SAR27.7 billion, while gross profit rose by 42% to SAR7.4 billion. Operating profit increased by 21% to SAR6.8 billion, and net profit reached SAR5.3 billion-marking a 22% year-on-year increase.

For the first half of 2025, SEC reported a revenue growth of 23%, totalling SAR47.2 billion. Gross profit rose by 40% to SAR10.2 billion, operating profit increased by 20% to SAR9.1 billion, and net profit grew by 19% to SAR6.3 billion compared to the same period in 2024.

According to the release, this strong financial performance was primarily driven by higher allowed revenue due to the growth of the regulated asset base of the electricity network and increased electricity production revenues in response to rising energy demand.

These gains were partially offset by higher operating and maintenance expenses due to network expansion, asset growth, and increased loads, as well as a rise in provisions for accounts receivable and a decrease in other income.

SEC noted that the expansion of its regulated asset base reflects the continued growth in its transmission and distribution networks to meet increasing electricity demand, support renewable energy integration, and advance energy storage projects. The company is also maintaining strategic investments in digital transformation and operational excellence initiatives.

Acting CEO of SEC Engineer Khalid Al-Ghamdi stated: "Our positive performance in the first half of 2025 reflects the company's continued growth across its business portfolio and asset base. It aligns with our strategy to provide reliable and secure electricity across the Kingdom, improve service quality for our customers, and advance sustainability and operational excellence. We are committed to further strengthening our position and leveraging the significant opportunities emerging from the energy transition in Saudi Arabia, in line with the ambitions of Vision 2030-enabled by the dedication of our talented national workforce and our unwavering commitment to serving the nation."

As of the end of H1 2025, the renewable energy capacity connected to the grid exceeded 9.2 GW, and the company successfully commissioned 8.0 GWh of battery energy storage systems across four sites: Bisha, Jazan, Khamis Mushait, and Najran.

SEC is currently developing an additional 14 GWh of storage capacity, expected to be operational and grid-connected next year, further strengthening grid reliability and renewable energy integration.

Reaffirming its commitment to embedding sustainability throughout its operations and enhancing its ESG practices, SEC achieved a significant leap in its Environmental, Social, and Governance (ESG) rating from S&P Global, earning 65 out of 100 in 2025. This marks a 30% increase over 2024 and an 85% improvement over 2023.

This accomplishment places SEC at the top of all companies in Saudi Arabia and as the regional leader in the energy sector across the Middle East and North Africa, surpassing the global utilities sector average by 66%, reinforcing its global leadership in sustainability performance.

Electricity demand continued to rise in H1 2025, with peak load growing by 3% to 75.1 GW, and total electricity consumption increasing by 10% to reach 160.5 terawatt-hours.

SEC successfully met record-breaking peak loads in Makkah, Madinah, and the holy sites during the 1446 AH Hajj season without a single service interruption-thanks to the company's full mobilization of resources to serve pilgrims and ensure their comfort. The company also made strong progress in service expansion and infrastructure development. SEC connected around 110,000 new customers, bringing the total customer base to 11.4 million.

The length of the distribution network grew by 6% to exceed 827,000 circuit kilometers, while transmission and fiber optic networks grew by 6% and 9%, respectively, reaching 103,800 and 101,000 circuit kilometers.

As part of its efforts to enhance service reliability and customer experience, SEC continued digital infrastructure upgrades and automated distribution substations, connecting them to control centers via fiber optic networks.

The automation rate of distribution substations reached 38.4%, and customer satisfaction rose to 85.8%, underscoring improvements in service quality and communication effectiveness.

Asharq Al Awsat