Saudi Electricity Company (5110) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue rose 23% year-over-year to SAR 19.5 billion, driven by business expansion and increased demand.

• Net profit increased 7.9% year-over-year to SAR 968 million, with higher financing costs partially offsetting top-line growth.

• Capital expenditures surged 162% year-over-year to SAR 27.6 billion, focused on grid expansion, renewables, and digital upgrades.

• Over 60,300 new subscribers added, total reaching 11.4 million; energy sold grew 10% year-over-year to 61.5 TWh.

• S&P upgraded credit rating to A+ (Stable) in March 2025, reflecting strong financial position and strategic importance.

Financial highlights

• Gross profit increased 34.3% year-over-year to SAR 2.87 billion; gross margin improved to 14.7%.

• Operating profit rose 16.3% to SAR 2.35 billion; operating margin declined to 12.0%.

• Adjusted EBITDA grew 10.2% to SAR 7.68 billion; EBITDA margin decreased to 39.4%.

• Net margin declined to 5.0% from 5.7% year-over-year.

• Cash flows from operating activities increased to SAR 4.9 billion, supported by positive working capital movements.

Outlook and guidance

• Management remains optimistic about sustainable growth, focusing on grid expansion, renewables, and digital transformation aligned with Vision 2030.

• Targeting 160,000 c.km transmission network and 1.1 million c.km distribution network by 2030.

• Plans to connect an additional 34.4 GW of renewable capacity by 2027.