Saudi Energy (5110) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 rose 15.5% year-over-year to SAR 38.2 billion, with net profit up 16.6% to SAR 5.24 billion, driven by higher electricity sales, regulatory adjustments, and operational excellence.

• Subscriber base reached 11.2 million (+1.2%), energy demand rose to 146 TWh (+6.1%), and peak load hit 72.9 GW (+9.5%) compared to H1 2023.

• Advanced sustainability, localization, and customer satisfaction, with a net zero target by 2050 and improved customer satisfaction scores.

• Fitch upgraded the credit rating to A+ (Stable) in May 2024, aligning with the Kingdom's sovereign rating.

• Total comprehensive income for the six months was SR 5.59 billion, up from SR 4.45 billion year-over-year.

Financial highlights

• EBITDA for H1 2024 reached SAR 17.5 billion, up 2.0% year-over-year, with a margin of 45.8%.

• CapEx surged 62.5% year-over-year to SAR 25.1 billion, with guidance of SAR 35–40 billion for 2024.

• Basic and diluted EPS for H1 2024 was SAR 0.21, up 23.5% year-over-year.

• Cash dividend of SAR 2.9 billion (SAR 0.70 per share) declared.

• Total assets as of June 30, 2024, stood at SAR 531 billion.

Outlook and guidance

• CapEx guidance for 2024 set at SAR 35–40 billion, supporting future grid and infrastructure expansion.

• The required revenue for 2024-2026 will be based on a revised WACC of 6.65%, impacting future regulatory returns.

• Strategic investments to drive further RAB growth, energy security, and support Saudi Vision 2030 goals.

• The company is implementing a plan to separate generation, transmission, and distribution into independent entities as part of sector restructuring.