SEC bounces back into the black

01 November 2002

Saudi Electricity Company (SEC)has posted net profits of SR 605 million ($161.3 million) in the first nine months of 2002. The results confirm the company's expectations of a turnaround after making losses for the first two quarters of the year.

Profits in the third quarter were SR 1,292 million ($344.5 million), overturning losses of SR 687 million ($183.2 million) incurred in the first half of the year. The sharp discrepancy between quarterly results is the result of increased electricity use in the summer, when demand is highest for air-conditioning.

SEC earlier this year released a full statement of profits for the first time since completing its process of consolidation. In 2001, it recorded a profit of SR 710.8 million ($189.5 million).

SEC is unbundling its operations to pave the way for competition to be introduced in some areas of the market. The company is expected to start privatising existing generation assets next year and is planning, in co-operation with the Saline Water Conversion Corporation, to launch tenders for independent water and power projects by the end of 2002.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.