Net profits of the listed power and utility firms in the second quarter of 2014 rose by 140 percent to SR3.7 billion, compared to SR1.54 billion in the same period last year, according to a financial report.

The profit growth came on the back of strong sales of the sector in Q2, 2014, at SR10.93 billion compared to SR7.53 billion in Q1, or an increase of 45.2 percent, the report carried by Al-Hayat daily said.

The power and utility sector is composed of two companies — Saudi Electricity Company (SEC) and the National Gas and Industrial Company (GASCO). Capitals of the two companies stand at SR41.66 billion and SR750 million, respectively, whereas their market capitalization stands at SR74.3 billion, or 3.5 percent of the Saudi market value, the report said.

Performance of the two power firms varied based on the conditions of each company in terms of capitals and activities. The SEC posted net profits of SR3.65 billion in Q2, 2014, compared to SR1.50 billion in Q2, 2013, or an increase of 143.54 percent.

However, the company registered losses worth SR913 million in Q1. Half-year profits of the company rose by 225 percent to SR2.74 billion, compared to SR 845 million in the same period last year, the report said.

The company attributed its profit growth to the accumulated provisions originally set to meet subscriber bad debts at SR2.6 billion in addition to the improvement in the operational profits.

Sales of the company rose by 48.4 percent to SR10.5 billion in Q2, compared to SR7.07 billion, the report said. On the other hand, GASCO realized net profits worth SR 38.2 million in Q2, compared to SR37.8 million in Q2, 2013, or an increase of 1.06 percent.

However, its profits in H1 of the current year dropped by 3.37 percent to SR71.7 million compared to SR74.2 million in the same period last year, the report added.