Saudi Energy (5110) Q3 2024 earnings summary

Executive summary

• Operating revenue for the nine months ended September 30, 2024, reached SAR 66.6 billion, up 17% year-over-year, driven by higher electricity sales, increased demand, and new development project revenues.

• Net profit for the nine-month period was SAR 12.1 billion, up 17.4% year-over-year, reflecting improved gross profit and higher other income.

• Total assets increased to SAR 545.9 billion as of September 30, 2024, from SAR 500.8 billion at year-end 2023.

• Total equity grew 1.7% to SAR 260.6 billion by September 2024.

• S&P revised the credit rating outlook to positive from stable.

Financial highlights

• Q3 2024 revenues were SAR 28.3 billion (+19% YoY); 9M 2024 revenues SAR 66.6 billion (+17% YoY).

• Q3 2024 EBITDA was SAR 13.4 billion (+8.3% YoY); 9M 2024 EBITDA SAR 30.9 billion (+4.6% YoY).

• Basic and diluted EPS for 9M 2024 was SAR 2.91 (+17.4% YoY).

• Cash and cash equivalents at period-end stood at SAR 2.6 billion, up from SAR 0.6 billion at the start of the year.

• Capex for 9M 2024 was SAR 39.7 billion, up 34.2% year-over-year.

Outlook and guidance

• Regulatory return (WACC) for 2024-2026 was revised to 6.65%, impacting required revenue calculations.

• The company is accelerating investments to meet rising electricity demand and support economic and demographic growth in Saudi Arabia.

• Strategic focus remains on reliable, sustainable power supply and innovation, aligned with Saudi Vision 2030.

• The company continues to implement a sector restructuring plan, aiming to separate generation, transmission, and distribution into independent entities.