SEC net profit falls by 6pc
Downturn blames on rising cost of purchased energy
The Saudi Electric Company has announced a six per cent drop in net profits in 2011’s third quarter, which it has attributed to the rising costs of purchased energy.
SEC posted a 2011 third quarter net profit of $587m, down from $613m last year. Analysts had predicted the state-controlled utility to post an increase in profit, but in a statement the SEC said: “The reason for the decline in the third quarter net profit compared to the same period a year earlier, is mainly the rise in costs of the consumption and purchase of energy.”
Earlier this week, the company announced it had signed a $1.44bn deal with an unnamed Saudi Arabian firm for the construction of a 1,200 megawatt power plant in Riyadh.