JEDDAH, (Reuters) – Saudi Electricity Co (SEC) reported a 25 percent rise in second-quarter net profit on higher tariffs and increased sales, slightly beating forecasts.
SEC made a net profit of 1.335 billion riyals ($356 million) in the three months to end-June, compared with 1.068 billion riyals in the same period last year, it said in a statement posted on the bourse website.
Analysts surveyed by Reuters had expected on average a net profit of 1.321 billion riyals for the quarter.
“The rise in net profit for the (first) six months is due to a tariff adjustment for the government, commercial and industrial sectors as well as an increase in energy sales,” the statement said.
Operational profit increased 27 percent to 1.2 billion riyals in the quarter.
The company, which has a current installed capacity of 50,000 megawatts, plans to boost capacity to at least 80,000 MW by 2020.
SEC is 81 percent owned by the government and has projects to add 1,826 MW in 2011 and another 12,752 MW from 2012 to 2016.
Saudi Arabia, OPEC’s biggest oil exporter, is struggling to keep up with rising power demand, which is rising 7-8 percent annually amid a growing population that exceeds 27 million.