Saudi Electricity Company Q1 2025 Revenue Surges by 23%

The Saudi Electricity Company (SEC) announced its financial results for Q1 of 2025 today, demonstrating significant growth in operating revenues by 23% to SAR19.5 billion, compared to SAR15.9 billion for Q1 in the previous year.
 According to a recent SEC press release, this strong performance is attributed to the expansion of the regulated asset base of the electricity grid, higher electricity generation revenues in response to rising demand, and increased revenues from projects' development and management related to the construction of substations and transmission lines for the benefit of the company's customers.
 The gross profit climbed 34.3% to SAR2.9 billion, compared to SAR2.1 billion in Q1 of the previous year, while the operating profit increased by 16.2% to SAR2.3 billion, up from SAR2.0 billion. Despite higher financing costs linked to the company's ambitious investment and expansion plans, the net profit grew by 7.9% to SAR968 million, compared to SAR897 million in Q1 last year.
 SEC CEO Khalid Al-Ghamdi said, "Our first-quarter performance marks a robust start to the fiscal year 2025, reflecting strong growth in operating revenues driven by business expansions, the accelerated growth of our regulated asset base, and continued improvements in operational efficiency. The results confirm the success of our strategy to efficiently implement large-scale strategic investment projects designed to foster the sustainable transformation of Saudi Arabia's energy infrastructure and create long-term value for our stakeholders."
 He added, "We remain committed to delivering reliable, high-quality services to our customers, accelerating our digital transformation, and enhancing customer experience."
 During Q1, SEC continued its efforts to enhance the reliability of electric service and improve the customer experience, achieving a customer satisfaction rate of 87%. It also advanced the development of its digital infrastructure and automated distribution stations and connected them to control centers via fiber optics. As a result, the automation rate of distribution stations reached 37.5%.
 Regionally, the company continued the Saudi-Egypt electricity interconnection project with a capacity of 3 GW, and is conducting preliminary studies for additional international interconnection projects, including with Italy, Greece, and India.
 Furthermore, SEC made significant progress in connecting renewable energy sources to the grid. By the end of Q1 of 2025, the total connected capacity reached approximately 6.7 GW, with an additional 34.4 GW of projects planned for completion by 2027. This expansion is complemented by an ambitious plan to deploy battery storage capacities, with the company currently developing and implementing up to 22 GWh. This includes a 500 MW battery project inaugurated in Bisha during Q1.
 In power generation, the total installed capacity of SEC's generation plants reached approximately 56 GW. SEC is further growing its power generation fleet with an extensive portfolio of under-development generation projects totaling 23.4 GW, including the expansion of wholly owned existing plants and independent power plants (IPP) in which SEC owns a share and new strategic partnerships.
 Also during Q1, the company initiated new projects, most notably the expansion of the Qurayyah Independent Power Plant (IPP) with a capacity of 3,010 MW in Eastern Region, with the potential to build a carbon capture unit. It is converting the fuel used in some plants from liquid to natural gas, aiming to improve thermal efficiency and reduce carbon emissions.
 To support future growth and financial flexibility, the company financed its expansion plans during Q1 by issuing dual-tranche, unsecured Sukuk amounting to $2.75 billion under its international Sukuk program. The Sukuk were issued under favorable terms and pricing, including a $1.5 billion tranche with a 5-year maturity, and a $1.25 billion green Sukuk tranche with a 10-year maturity dedicated to supporting sustainable projects.
 The company also priced the 5-year and 10-year tranches at spreads of 85 and 95 basis points, respectively, over the 10-year U.S. Treasury yield, marking a historic record as the tightest spread ever achieved by a Saudi company. This reflects the growing confidence of global investors in the company's strategy and sustainability.
 The release also highlighted that the company's financial profile was further strengthened with the upgrade of its credit rating by Standard & Poor's (S&P) to A+, with a stable outlook in March 2025, which was in line with the sovereign rating of the Kingdom. SEC is currently rated Aa3 by Moody's and A+ by Fitch Ratings, reflecting its strong financial position, robust cash flows, and strategic importance to the energy sector in the Kingdom.