The Saudi Electricity Company announced today its financial results for the first quarter of 2021, as it recorded operating revenues of 13.35 billion Saudi riyals, while the total profit amounted to 2.9 billion Saudi riyals, and the operating profit was 2.3 billion Saudi riyals, and the net profit amounted to 1.7 billion Saudi riyals, and the total rights Ownership 249.7 billion Saudi riyals at the end of the first quarter of 2021.The company’s financial results for the first quarter of 2021 AD come as its first quarterly results after the government fee was canceled at the beginning of 2018 AD and the organization of its revenues according to the organized asset base model starting from the beginning of the fiscal year 2021, in implementation of the comprehensive set of structural, organizational and financial reforms approved in the electricity sector, in implementation. The Royal Decree issued in November 2020 AD, whereby reforms aimed at raising the level of service provided to the consumer, and creating a stimulating and attractive environment for investment in the electricity sector that contributes to economic development and is in line with the requirements of the “Kingdom 2030” vision.
The company indicated that within the implementation of comprehensive structural, organizational and financial reforms, starting from the first quarter of 2021 AD, the cancellation of the government fee and the application of the structured asset base model were essentially reflected in the restructuring of the company’s financial position and strengthening its ability to meet its dues and fulfill its financial obligations, including cash payment of fuel payments and energy purchases. . As I explained that the structured asset base model is a methodology for the organization that is in line with international standards, and specifies the appropriate level of revenue (the required revenue) that covers the costs of the efficient company and achieves a fair return on the invested capital in the aspects of activity organized by the Water and Electricity Authority, and this methodology includes continuing support The government of the company through the budget calculation by covering any difference between the required revenue specified by the regulator and the actual revenues of the company. Payments to the company’s budget fund are disbursed on a quarterly basis, and are recognized as other operating income in the income statement.
Fahad Al-Sudairy, CEO of the Saudi Electricity Company, said: “The fiscal year 2021 will be a transformational year for the company as a result of implementing a comprehensive package of structural, financial and organizational reforms that contribute to enhancing the financial and operational sustainability of the company, enabling it to provide the service with high efficiency and reliability. Moreover, as it was supported by the cancellation of the government fee, the contribution of the budget account and the reduction in financing costs, in addition to the continued growth in the subscriber base and the demand for electric energy in the Kingdom compared to the same period of the previous year. The level of the company’s revenue for the quarter over the whole year.
The first quarter of 2021 AD included the completion of an important and standard achievement for the company and the Kingdom at the global level, in implementation of the royal decree, and in implementation of the directives of the relevant authorities, the company completed in a time not exceeding 13 months of installing and replacing more than 10 million smart electric meters in all regions of the Kingdom. Within its huge project, “smart meters”, which is a fundamental step in its march towards network automation and digital transformation to improve the quality and reliability of service for subscribers, the company’s investments in the project amounted to more than 9.5 billion riyals, about 40% of which support local content.
The smart meters support techniques for fast and real-time reading of data from the meter site, and technologies that support the “Hesabi” service to automatically transfer the service to the final beneficiary of electricity, whether he is an owner or a tenant. It will also gradually provide a set of other benefits to the subscriber, such as: speed of communication, restoration The service is automatic in a short period of time, and enables the subscriber to monitor his consumption pattern in real time through the application of electricity, in addition to that, the company was able during the first quarter of 2021 to keep pace with the necessary expansion in the lengths of the huge electrical network, whose total length reaches 22 times the circumference of the planet, as the lengths of my network grew Transmission and optical fibers at a rate of 5% to reach more than 90,000 km. Circular and 82 thousand km, respectively, as well as the lengths of the distribution network grew at an annual rate of 5% to reach more than 710 thousand km. Circular, and the company delivered electrical service to more than 119,000 new subscribers, bringing the number of subscribers to more than 10.2 million subscribers.