Saudi Energy Company revenue climbs 11.5% to SAR 87.2 billion

Summary

• Nine-month revenue reached SAR 87,244 million, up 11.465% from a year earlier.
• Net profit rose 4.255% to SAR 12,077 million as the regulated asset base expanded.
• Financing costs climbed on new borrowing raised to fund the capital spending plan.

The latest

Revenue at Saudi Energy Company reached SAR 87,244 million in the nine months ended 30 September 2026, an increase of 11.465% on the same period a year earlier, according to the company's disclosure to the Saudi Exchange. Net profit attributable to the issuer's shareholders rose 4.255% to SAR 12,077 million. The company attributed the revenue gain mainly to growth in the regulated asset base of the electricity network.

Details

• The revenue drivers: The company said the nine-month increase stemmed mainly from higher required revenue recognised on the regulated electricity network asset base, higher income from project development and management contracts covering substations and transmission lines built for customers, and continued growth in the customer base.
• The quarter: Third-quarter revenue reached SAR 35,044 million against SAR 31,047 million a year earlier, up 12.874%, and SAR 30,864 million in the preceding quarter, up 13.543%. The company attributed the sequential increase to the seasonality of electricity demand, which lifts volumes sold during the current quarter.
• Quarterly profit: Net profit attributable to shareholders in the quarter was SAR 5,354 million, up just 0.412% year on year but 9.466% above the preceding quarter's SAR 4,891 million. Quarterly operating profit edged up 0.926% to SAR 7,081 million and gross profit rose 4.424% to SAR 7,788 million.
• The margin squeeze: Revenue grew faster than earnings across both periods. Nine-month gross profit rose 6.803% to SAR 18,886 million and operating profit 4.714% to SAR 16,882 million, both trailing the 11.465% revenue increase and leaving profit growth at less than half the pace of the top line.
• What lifted profit: Beyond higher operating revenue, the company cited a lower provision for expected credit losses on electricity consumer receivables and a higher share of profit from equity-accounted investments as the main contributors to the nine-month improvement in net profit.
• What held it back: Three items partially offset those gains, according to the disclosure: higher operation and maintenance expenses tied to business growth, the expanding operating asset base and service reliability; lower other income; and higher net financing costs after the company obtained new funding to support execution of its capital plans.
• Shareholder earnings: After SAR 6,780 million of profit attributable to the mudaraba instrument, net profit attributable to the company's shareholders was SAR 5,297 million, against SAR 4,911 million a year earlier. Earnings per share rose 7.6% to SAR 1.27 from SAR 1.18.
• Balance sheet: Total equity excluding non-controlling interests stood at SAR 263,715 million, up 1.081% from SAR 260,893 million. Total comprehensive income attributable to shareholders jumped 21.053% over the nine months to SAR 13,443 million, far outpacing the increase in net profit.
• The audit: The auditor issued an unmodified opinion with no qualifications recorded, and the company reported no reclassification of comparative figures. The disclosure, filed on 10 November 2026, covers preliminary condensed consolidated results and does not set out a figure for capital expenditure or new borrowing during the period.

Background

Required revenue is the amount a regulated utility is permitted to recognise based on its approved asset base, meaning network investment translates directly into recognised income. The company links its revenue growth to that mechanism alongside project contracts and customer additions.

Between the lines

The company's own explanation points to a cost of expansion. The same asset-base growth that lifts required revenue also raises operation and maintenance spending, while the new funding obtained for capital plans pushes up net financing costs. That shows in the numbers: earnings rose at less than half the pace of revenue over nine months, and quarterly net profit was essentially flat year on year despite a 12.874% revenue jump.

What's next

Full-year results will show whether fourth-quarter demand, outside the peak season, sustains the revenue pace, and whether financing costs keep widening the gap between revenue and profit growth as capital spending continues.

Source: Saudi Exchange (Tadawul) — Saudi Energy Company disclosure