RIYADH, 6 August — The Saudi Electricity Co. (SEC) announced yesterday a $182.9 million loss in net profits for the first six months of 2002 .
SEC, one of the Kingdom’s largest companies, said its losses in the second quarter dropped by 33.1 percent to $73.3 million from $109.6 million in the first quarter. The company, which posted net profits of $207.7 million in 2001, said it expected performance to improve in the third and fourth quarters due to high power consumption during the hot summer months.
SEC was officially listed on the Saudi bourse in May, to become the largest firm with more than 17 percent of total market capitalization of around $80 billion. The company has since lost that mantle after shedding more than five percent of its market value and dragging the bourse index below the 2,700-point barrier after it hit an all-time high of 2,927 points on May 20. The Saudi electricity sector has been undergoing a major restructuring with the establishment of SEC in 2000 seen as a prelude to privatization, and a new authority to regulate the interests of consumers, operators and investors. Before SEC’s creation, the total outstanding debt of the Saudi power sector reached $26 billion. The Kingdom estimates its electricity sector will need investments of more than $117 billion up to 2020, as the population is projected to almost double to 38 million.
