Saudi Electricity Company Reports Significant Profit Surge

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Saudi Electricity Company (SEC) announced a substantial 88.9% surge in net profit, reaching 12.9 billion riyals ($3.4 billion) for 2025, compared to 6.8 billion riyals ($1.8 billion) in the previous year, driven by increased demand and strategic expansion projects.

The company attributed this impressive financial performance to a combination of factors, including a rise in electricity demand, accelerated expansion and modernization projects across its electrical grid, advancements in digital transformation and automation, and a focus on operational excellence initiatives.

Operating revenues for 2025 reached 102.2 billion riyals ($27 billion), marking a 15.3% increase from 88.7 billion riyals ($23.6 billion) in the prior year. This growth was primarily driven by increased revenue requirements, fueled by a robust expansion of the regulated asset base, heightened demand, growth in electricity production revenues, and improved power plant readiness.

Following the announcement of these strong financial results, Saudi Electricity Company's shares experienced a positive uptick, rising approximately 1% to reach 13.64 riyals.

The company’s gross profit also saw significant growth, increasing by 18.9% to 20.8 billion riyals ($5.5 billion), compared to 17.5 billion riyals ($4.5 billion) in the previous year. This improvement reflects enhanced operational efficiency and a favorable revenue mix, with gross profit growth outpacing revenue growth. Operating profit surged by 62.1% to reach 19.1 billion riyals ($5.9 billion), compared to 11.8 billion riyals ($3.14 billion) in the prior year. This increase was bolstered by revenue growth, improved profitability, and a positive comparison due to non-recurring expenses recorded in 2024 related to the settlement of historical differences in fuel quantities, prices, handling costs, and electricity.

Despite increased financing costs associated with major capital projects, a rise in provisions for doubtful debts, and a decrease in other revenues due to a non-recurring item in 2024, the company's net profit soared to 12.98 billion riyals ($3.4 billion) compared to 6.87 billion riyals ($1.8 billion) the previous year.

On a like-for-like basis, excluding non-recurring items in 2024, operating profit for 2025 grew by 12.4%, while net profit increased by 7.4%. Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached approximately 41.5 billion riyals ($11 billion), representing an annual growth of 10.1%.

Saudi Electricity Company has maintained a robust financial position with a balanced capital structure, supported by diversified financing instruments. During the year, the company secured 56 billion riyals ($15 billion) through sukuk issuances, domestic and international financing, and export credit agreements. This financial track record remains consistent with the requirements for a strong investment-grade credit rating, mirroring the Kingdom's sovereign rating.

Reflecting the company’s strong performance and strategic importance, Standard & Poor's raised its rating to (A+) with a stable outlook during 2025. Moody's maintained its rating at (Aa3) with a stable outlook, and Fitch affirmed its rating at (A+) with a stable outlook.

As part of its strategy to develop generation capabilities, enhance the energy mix, and support supply security and reliability, Saudi Electricity Company is actively developing a portfolio of generation projects with a capacity of approximately 24 gigawatts. These projects encompass expansions of existing power plants, strategic partnerships in thermal and renewable energy projects, the replacement of liquid fuel with gas, and the rehabilitation of units to extend their operational life.

The company continues to expand its transmission and distribution network to support major projects, industrial growth, and enhance the grid's readiness to accommodate higher proportions of renewable energy. By the end of 2025, 12.3 gigawatts of renewable energy had been connected to the grid, and energy storage battery systems with a capacity of 8 gigawatts/hour were in operation. Additional storage projects with a capacity of 14 gigawatts/hour are currently under development.

During 2025, a consortium of Saudi Electricity Company and EDF Energy Solutions won the Samtah solar power project with a capacity of 600 megawatts. A power purchase agreement was signed for the expansion of the Qurayyah plant with a capacity of 3.01 gigawatts, and two power conversion agreements were signed for the Third and Fourteenth plants with a production capacity of 3.4 gigawatts.

The number of generation units rehabilitated to extend their operational life reached 45 units, adding 2.1 gigawatts with a standard availability rate of 99% during the summer of 2025. In parallel, the first phase of converting the Tenth Station was completed, the conversion of Rabigh 2 Station began, and plans are underway to convert five additional stations.

The distribution network automation rate reached 40.8%, and customer satisfaction increased to 86%. The average duration of electrical outages improved by 7%, and the average frequency of outages improved by 15%. The time to connect service for new subscribers was reduced by 14% to reach 2.5 days.

The peak load during 2025 increased by 3% to reach 77.1 gigawatts, while the company's total production reached 237.8 terawatt hours, representing more than 57% of the total electricity production in the Kingdom. Service was provided to approximately 260,000 new subscribers, bringing the total number of subscribers to 11.5 million.

The lengths of the distribution network exceeded 859,000 circular kilometers, representing a growth rate of 6.6%. The lengths of transmission and fiber optic networks grew by 4.9% and 9%, respectively, reaching more than 104,600 circular kilometers for transmission networks and 104,400 kilometers for fiber optics.