SEC subscribers rise by 2.8m since 2000, local work force now 87.5%

1 / 4
2 / 4
3 / 4
4 / 4
Updated 18 September 2012
0

SEC subscribers rise by 2.8m since 2000, local work force now 87.5%

RIYADH: Customers of the Saudi Electricity Company rose to 6.341 million last year from 3.5 million since the company was established in 2000, up by 80.2 percent, according to the company's 2011 Annual Report released today.
From a total of 7,406 electrified towns, villages and settlements in 2000, the figure those to 12,256 in 2011, up by 65.4 percent.
For the year 2011 alone, electricity service was delivered to 363,318 new customers and 266 villages and settlements.
Power generation capacity rose to 51,148 megawatt in 2011 from 24,083 megawatt in 2000, or an increase of 124 percent, and transmission network lines went up from 29,166 circular kilometers in year 2000 to 49,675 circular kilometers in 2011, up 70 percent.
In terms of human resources, SEC reported a total work force of 28,414, of which 22,983 or 87.52 percent were regular Saudi employees, up from 73.2 percent in 2000.
Non-Saudi employees accounted for only 3,545 or 12.47 percent, and the rest of the work force included 1,107 on-the-job trainees and 779 university graduates.
"During the past eleven years, the Company has completed 96% of the national plan for interconnecting the national network with the extra-high voltage 380 KV network which resulted in power being supplied to the entire regions of the Kingdom through the power transmission network," said Chief Executive Officer Ali Ibn Al-Barrack in the report.
Al-Barrack stressed that "the company has established its relations with its partners based on fairness and transparency and encouraged the national industries as well."
As a result, he said, SEC's purchases from the national industries in the field of electricity rose to SR 6 billion or 90 percent of the company’s total purchases.
"The company further provided open opportunities to the private sector urging them to participate in the company’s electricity projects with investments amounting to SR 28 billion to generate a capacity of 7 thousand MW," he added.
Saleh Ibn Hussein Al-Awajji, chairman of the Board of Directors, said in a statement contained in the annual report that SEC paid cash dividends amounting to SR 547 million to individual shareholders, equivalent to 7 percent of the total share value of the company.
The shareholders’ dividends amounted to SR 306 million for the fiscal years 2000 - 2001, he said.

 


Gulf ratings untarnished by growing GRE debt

Updated 13 min ago
0

Gulf ratings untarnished by growing GRE debt

  • Head of equity research at Exotix Capital Hasnain Malik: Investors familiar with the Gulf fully expect debt issuance by governments and their related enterprises to increase
  • Hasnain Malik: The generally very strong financial position of sovereigns in the Gulf and their defensible exchange rates has provided a relative haven for global fixed income investors

LONDON: The sovereign ratings of Gulf countries remain unaffected for now by both the recent and planned debt-raising activities of government-related entities, according to S&P Global.
The agency published a research note on Tuesday following investor concerns about the implications of significant amounts of debt being raised by government-backed entities such as investment funds and oil companies.
Saudi Arabia’s Public Investment Fund (PIF) raised an $11 billion international syndicated loan in September this year, while in July, Saudi Aramco said it might consider acquiring a strategic stake in Saudi Basic Industries Corp. (Sabic) from PIF. This potential acquisition is likely to require funding of up to $70 billion, said S&P Global.
“So far, the level of GRE debt and the potential for these contingent liabilities — obligations that have the potential to materialize on a government’s balance sheet or more broadly affect its fiscal profile — being realized has not led to negative rating actions for Gulf Cooperation Council (GCC) sovereigns,” the S&P report said.
“If contingent liabilities do materialize, they have the potential to negatively affect sovereign ratings,” it added, using Mozambique as an example of where the restructuring of a government-guaranteed GRE loan led to a downgrade of the sovereign rating in 2016.
Hasnain Malik, head of equity research at Exotix Capital, said that most investors anticipated the Gulf region would ramp up debt-raising activities in the near future.
“Investors familiar with the Gulf fully expect debt issuance by governments and their related enterprises to increase. This is in line with their stated strategies,” he said.
“The more the debt that is taken on by government-related enterprises, the more that it will be lumped together with debt taken out by the sovereign in order to assess overall risk. But this is nothing new. Past discussions of the overall debt position of ‘Dubai Inc’ or ‘Qatar Inc’ have grappled with the issue of explicit and implicit government guarantees,” he said.
Rating agency Moody’s said last month that the multibillion-dollar PIF loan demonstrated that Saudi Arabia had a “strong ability to raise alternative funding in the capital markets,” according to its Oct. 17 report.
It then warned that a “significant reliance on broader public- sector borrowing to fund the diversification and development agenda would over time increase contingent liability risks for the sovereign.”
Malik said the region had retained its appeal to investors so far despite the potential rising GRE debt.
“In what has been a tougher environment for emerging market debt this year, the generally very strong financial position of sovereigns in the Gulf and their defensible exchange rates has provided a relative haven for global fixed income investors,” he said.
“The imminent inclusion into JP Morgan’s mainstream global indices of debt will likely put the region closer to the center of the average emerging market fixed income investor,” he said.
S&P Global rates 24 GREs in the Gulf region, with most of the companies enjoying the same rating as the sovereign.