Saudi Electricity Company announces its annual financial results for the fiscal year ending on 31-12-2020
| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 68,709 | 65,040 | 5.641 | ||
| Gross Profit (Loss) | 8,097 | 6,124 | 32.217 | ||
| Operational Profit (Loss) | 7,627 | 6,535 | 16.71 | ||
| Net Profit (Loss) after Zakat and Tax | 3,026 | 1,388 | 118.011 | ||
| Total Comprehensive Income | 2,316 | 641 | 261.31 | ||
| Total Share Holders Equity (after Deducting Minority Equity) | 247,775 | 73,570 | 236.788 | ||
| Profit (Loss) per Share | 0.5 | 0.33 | |||
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is | The increase in net profit for the current year compared to the prior year is mainly driven by higher operating revenues due to 1)
implementing the Minimum Service Operating Cost Model to regulate SEC’s revenue and decide the required revenue for the fiscal year of 2020, and coverage of the balancing account of the difference between the approved required revenues and the actual achieved revenue for SEC in 2020 with an amount of SAR 6,131 million, this was approved by the Ministerial Committee for Restructuring the Electricity Sector ; 2) continued growth in subscribers’ base, this is in addition tothe cancellation of the net deferred tax expense of SAR 412 million in line with the approved amendment of the Income Tax Law during 2020. The aforementioned items were partly offset by 1) lower electricity sales reflecting a slight decline in sold volume and the change in the sales mix towards higher contribution of residential consumption and lower commercial and governmental consumption as a result of the containment measures of Covid-19 Pandemic, which in turn affected the rise in government fees as well. 2) Recording of SAR808 million as a one-off settlement of fuel dues differences related to the supply of light fuel oil rather than heavy fuel oil to one of the Company’s power plants, 3) This in addition to higher purchased power costs. |
| Statement of the type of external auditor's report | Unmodified opinion |
| Reclassification of Comparison Items | None |
| Additional Information | In reference to Saudi Electricity Company’s (SEC) announcement, published on Saudi Stock Exchange (Tadawul) on 16/ 11/ 2020 related to approvals of the electricity sector’s financial and regulatory reforms, including the reclassification of its financial government liabilities. a Minimum Service Operating Cost Model has been implemented to regulate SEC’s revenue to decide the required revenue for the fiscal year of 2020. Such required revenue will cover SEC’s total operating and financing costs including the distribution of dividends to all its shareholders including the Public Investment Fund (PIF). Pursuant to the approval of the Ministerial Committee for Restructuring the Electricity Sector, SEC’s required revenue (unconsolidated revenue) for the fiscal year 2020 was decided at SAR 68,764 million; this includes the activation of the balancing account revenue for the fiscal year 2020 of SAR 6,131 million.
Net profit attributable to common shares for 2020 (after deducting profit attributable to Mudaraba Instrument of SAR 927 million) amounted to SAR 2,098 million compared to SAR 1,388 million for the prior year, representing an increase of 51.2%, Accordingly 2020 basic and diluted earnings per share arrived at SAR 0.50 compared to SAR 0.33 of the prior year.
Total equity increase of 237% to SAR 247.8 billion at end of 2020 compared to 73,6 billion at end of the prior year is reflecting the classification of financial instrument (Mudaraba instrument) - signed with the Government, represented by the Ministry of Finance - with an amount of SAR167.92 billion under Equity, this came in the context of above referred regulatory and financial reforms, which were supportive to SEC’s capital structure.
The Company will organize a conference call to discuss FY2020 financial results with investors and financial analysts on Monday 05/04/2021 at 3:30 PM (KSA Time). Investors wishing to participate in this conference call are requested to contact the Company's Investor Relations Department at: [email protected] |
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