Saudi Electricity Co profit up 2 percent on higher sales

Saudi Electricity Co profit up 2 percent on higher sales

Saudi Electricity Co reported a 2-percent rise in second-quarter profit on Wednesday, due to higher energy sales.

July 19, 2012 12:15 by Reuters

Saudi Electricity Co reported a 2-percent rise in second-quarter profit on Wednesday, due to higher energy sales.

The utility had net profit of 1.36 billion riyals ($363 million), up from 1.34 billion riyals in the prior-year period, it said in a bourse statement.

Electricity in the world’s top oil exporter is heavily subsidised, contributing to soaring power demand among both residential and industrial or business users.

SEC results are heavily influenced by the seasons and its earnings improve during the hotter weather in the second and third quarters when higher air conditioning drives increased electricity consumption.

The utility posted a first quarter loss of 583 million riyals in April.

SEC’s installed capacity of 50,000 megawatts needs to rise to 80,000 megawatts by 2020, officials have said, at an estimated cost of 400 billion riyals ($106.6 billion).

The company said last month it would buy back a $1.3 billion sukuk issued in 2007.

(Reporting By Angus McDowall; Editing by Amran Abocar)