The Saudi Electricity Company (SEC) announced today its financial results for 2024, reporting total operating revenues of SAR88.7 billion ($23.65 billion), marking an 18 percent annual increase.
SEC’s capital expenditures also surged to an all-time high of SAR60 billion ($16 billion) in 2024, reflecting a 44 percent increase from 2023. These investments were directed toward power infrastructure expansion, smart grid enhancements, generation efficiency improvements, and service reliability upgrades.
“2024 marks a new phase of accelerated growth, operational excellence, and strategic investment in the future. We have achieved record-breaking revenues and executed the largest capital investments in SEC’s history. As we advance our strategic initiatives, we remain committed to supporting the unprecedented transformation of the power sector in line with Saudi Vision 2030,” stated SEC Acting CEO Eng. Khalid Al-Ghamdi.
SEC net profits decline to SAR6.9 billion
SEC posted a net profit of SAR6.9 billion for 2024, compared to SAR10.2 billion in the previous year. The decline is attributed to a one-time expense of SAR5.7 billion, resulting from the final settlement of long-standing disputed amounts related to historical discrepancies in fuel quantities, pricing, handling costs, and electricity tariffs.
Excluding this non-recurring expense, the company’s adjusted net profit stood at SAR12.1 billion, up from SAR11.1 billion in 2023, representing an 8.9 percent increase.
The company attributed this improvement to key factors, including higher recognized revenue requirements in 2024, a 10 percent expansion in regulated asset bases to SAR231 billion, increased power generation revenues, a growing customer base, enhanced operational efficiency, lower maintenance and operating costs, higher net other income, improved collections, reduced zakat provisions and increased equity-accounted earnings from independent power plants.
“We are dedicated to enhancing energy security, supporting Saudi Arabia’s transition into a regional hub for clean energy, and delivering reliable, high-quality electricity services. Our focus remains on accelerating innovation, advancing digital transformation, and improving operational efficiency, all while ensuring an outstanding customer experience,” added Al-Ghamdi.
SEC adds 6.8 GW of renewable capacity in 2024
SEC also continued its commitment to renewable energy integration, with 6.8 GW of renewable capacity connected to the grid by year-end. SEC is also developing new projects with a total capacity of 27.3 GW and has initiated tenders for an additional 33.2 GW of renewable energy projects.
To enhance grid stability and efficiency, SEC commissioned Saudi Arabia’s first battery energy storage system (BESS) in Bisha, with a capacity of 500 MW. The company also advanced the development of five additional storage projects totaling 2,500 MW.
It also continued expanding regional grid interconnections, including the 3 GW Saudi-Egypt interconnection project, and feasibility studies for new interconnections with Italy, Greece and India.
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Company secures SAR57.2 billion in financing
SEC also advanced its digital infrastructure by automating all distribution substations in the holy sites and integrating the Makkah Distribution Control Center with the fiber optic network, ensuring uninterrupted service, particularly during the Hajj season.
The company added that it maintained a strong financial position, securing SAR57.2 billion in financing throughout the year through various instruments, including sukuk issuances, local and international loans and export credit agency-backed facilities to support its long-term growth strategy.
“Reflecting its solid performance and strategic outlook, Moody’s upgraded SEC’s credit rating from A1 to Aa3 with a stable outlook, while Fitch raised its rating from A to A+, aligning SEC’s credit profile with Saudi Arabia’s sovereign rating. These upgrades further reinforce SEC’s position among the world’s leading power utilities,” the company added.
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