Saudi Energy (5110) Q1 2025 earnings summary

Executive summary

• Q1 2025 operating revenue rose 23% year-over-year to SR 19.5 billion, driven by higher electricity sales, business expansion, and increased construction revenue.

• Net profit for the period was SR 968 million, a 7.9% increase compared to Q1 2024, with higher financing costs partially offsetting growth.

• Capital expenditures surged 162% year-over-year to SR 27.6 billion, focused on grid expansion, renewables, and digital upgrades.

• Over 60,300 new subscribers were added, bringing the total to 11.4 million; energy sold grew 10% year-over-year to 61.5 TWh.

• S&P upgraded the credit rating to A+ (Stable) in March 2025, reflecting strong financial position and strategic importance.

Financial highlights

• Gross profit increased 34.3% year-over-year to SR 2.87 billion; gross margin improved to 14.7%.

• Operating profit rose to SR 2.35 billion, up from SR 2.02 billion in Q1 2024.

• Finance costs net of income were SR 1.40 billion, up from SR 1.14 billion year-over-year.

• Adjusted EBITDA grew 10.2% to SR 7.68 billion; EBITDA margin decreased to 39.4%.

• Cash and cash equivalents at period end were SR 1.05 billion, down from SR 1.63 billion at year-end 2024.

Outlook and guidance

• The company expects continued revenue growth, supported by regulatory tariff adjustments, grid expansion, renewables, and digital transformation aligned with Vision 2030.

• Capital commitments for unexecuted projects stand at SR 144 billion, indicating robust future investment.

• Targeting 160,000 c.km transmission network and 1.1 million c.km distribution network by 2030.

• Plans to connect an additional 34.4 GW of renewable capacity by 2027.