SEC makes first-half loss

09 August 2002

Saudi Electricity Company (SEC)announced on 4 August first-half losses of SR 686 million ($183 million). The company, which was formed in April 2000 through the consolidation of 10 regional utilities, first published financial statements in May, posting pre-tax profits of SR 779 million ($208 million) for the period April 2000-December 2001 (Saudi Arabia, MEED Special Report, 21:6:02, page 36).

However, SEC reported that the second-quarter losses of SR 275 million ($73 million) were less pronounced than the first-quarter losses of SR 411 million ($110 million) and attributed the improvement to a 21 per cent increase in revenue over the period. SEC said the losses were due to the winter period of poor seasonal electricity demand in the kingdom and that the company's performance is expected to improve during the summer months of the third quarter.

The company is undergoing a long restructuring process, involving the unbundling of its generation, transmission and distribution facilities, and their establishment as horizontal strategic business units. The process is expected to be completed by the end of the year.

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