Saudi Energy (5110) Q2 2025 earnings summary

Executive summary

• Achieved robust financial and operational performance in H1 2025, with strong growth in energy demand, operational excellence, and sustainability initiatives, supported by business expansion and strategic investments amid Saudi Arabia's energy transition.

• Operating revenue for H1 2025 reached SAR 47.2 billion, up from SAR 38.2 billion year-over-year, driven by higher electricity sales and other operating revenue.

• Net profit for H1 2025 increased to SAR 6.25 billion from SAR 5.24 billion year-over-year.

• S&P upgraded credit rating to A+ (Stable) in March 2025, reflecting improved financial strength.

• Implemented a new tariff for non-eligible industrial, commercial, and agricultural establishments, effective May 28, 2025.

Financial highlights

• H1 2025 operating revenue reached SAR 47.2 billion, up 23.5% year-over-year; net profit SAR 6.25 billion, up 19.3%.

• Gross profit rose 39.9% to SAR 10.22 billion; EBITDA increased 13.5% to SAR 19.85 billion.

• EPS surged 114.3% to SAR 0.45; total equity at SAR 259.99 billion, up from SAR 251.37 billion at year-end 2024.

• Q2 2025 revenue was SAR 27.72 billion, up 23.9% year-over-year; Q2 net profit SAR 5.28 billion, up 21.6%.

• Net cash generated from operating activities was SAR 10.9 billion, up from SAR 6.7 billion year-over-year.

Outlook and guidance

• Anticipated significant increase in national power demand, with continued investment in grid reliability, renewables, and energy storage.

• Regulatory changes, including revised WACC to 6.65% for 2024-2026, will impact required revenue calculations.

• Well positioned to capture future growth and enable power sector targets aligned with Vision 2030.