RIYADH: Saudi Energy reported its financial results for the first quarter ended March 31, with operating revenues rising 9.4 percent, while net profit jumped 89.3 percent to SR1.8 billion ($480 million), reflecting growth in the regulated asset base and improved operational efficiency.
The results were supported by continued strategic investments and disciplined execution, contributing to Saudi Arabia’s energy transition and meeting rising electricity demand.
Operating revenues for the first quarter of 2026 reached SR21.3 billion, compared with SR19.5 billion in the same period a year earlier, marking a 9.4 percent increase.
The growth was driven by higher regulated revenue requirements supported by strong expansion in the transmission and distribution asset base, increased electricity demand, and continued customer base growth, which reached 11.6 million customers, up by 227,000 year on year.
Total gross profit rose 32.4 percent to SR3.8 billion, compared with SR2.9 billion in the same quarter last year, reflecting improvements in both operational efficiency and revenue mix. The gross profit margin also expanded by 3.1 percentage points to 17.8 percent, compared with the same period a year earlier.
Operating profit increased 35.1 percent to SR3.2 billion, supported by revenue growth, operational efficiency gains, and lower provisions for electricity receivables due to improved collection rates. The operating margin rose by 2.8 percentage points to 14.9 percent, compared with the same period a year before.
Earnings before interest, taxes, depreciation, amortization, and zakat, or EBITDA, rose to SR9.0 billion, up 16.5 percent year on year, with the margin improving by 2.6 percentage points to 42.0 percent, driven by efficiency gains and a stronger revenue mix.
Net profit rose to SR1.8 billion, compared with SR968 million in the same quarter a year earlier, representing an increase of 89.3 percent.
The net profit margin rose to 8.6 percent, up 3.6 percentage points year on year, supported by lower finance costs due to higher capitalization of borrowing costs tied to major projects under development.
Saudi Energy CEO Khaled bin Salem Al-Ghamdi said: “Electricity demand in the Kingdom continues to grow strongly, driven by economic diversification, giga-project development, population growth, and the shift toward a more diversified energy mix.”
He added: “The company plays a central role in enabling this growth through ongoing development of critical electricity grid infrastructure, improving resilience, and reliability, as well as customer service.”
He further said: “These strong financial and operational results in the first quarter of 2026 are attributed to the continued expansion of the regulated asset base of the grid, improved operational efficiency, and growth in generation capacity and availability.”
He added: “Energy is the pulse of the Vision, the axis of transformation and the driving force shaping the Kingdom’s prosperity.”
He continued: “We remain committed to our role not only in building infrastructure, but in creating an integrated and intelligent energy ecosystem that serves future generations, supports the Kingdom’s long-term ambitions, and contributes to sustainable growth and long-term value creation for all stakeholders.”
The company also announced that its general assembly, held on May 5, approved cash dividends totaling SR2.9 billion for the 2025 fiscal year, equivalent to SR0.70 per share.
The distribution reflects the company’s continued ability to generate stable cash flows, supported by its regulated business model, while maintaining a balanced and disciplined approach to capital allocation and delivering steady returns to shareholders.
SE maintained a strong financial position in the first quarter, supported by a balanced capital structure and diversified funding sources.
It also successfully completed an inaugural issuance of unsecured sukuk in three tranches worth $2.4 billion under its international sukuk program, enhancing its access to global capital markets and supporting its long-term capital investment plans.
SE secured Shariah-compliant murabaha financing facilities worth SR16 billion to refinance existing debt under its current murabaha arrangements, enhancing liquidity and supporting proactive balance sheet management.
The firm’s financial profile remains aligned with strong investment-grade credit ratings, in line with the Kingdom’s sovereign rating of A+ with a stable outlook from Standard & Poor’s and Fitch, and Aa3 with a stable outlook from Moody’s.
Separately, SE continued to strengthen its position through strategic investments during the quarter, expanding its investment portfolio and reinforcing its long-term growth strategy.
It acquired a minority stake in Kraken to enhance its digital capabilities and accelerate the adoption of advanced, data-driven energy platforms, supporting improved operational efficiency and customer experience.
The company also invested in the National Innovative Industrial Co., or NAMI, which specializes in 3D printing, to advance local industrial capabilities and promote the adoption of advanced manufacturing technologies.
In parallel, SE established its subsidiary Masarat AlistithmarAlMustadam, a dedicated entity to acquire, develop and manage unregulated business opportunities, aiming to deliver long-term shareholder value while ensuring financial sustainability.
The business continues to advance its strategy to expand power generation capacity, diversify the energy mix, and strengthen supply reliability.
It has made notable progress in developing an additional 24 gigawatts of generation capacity, including the expansion of existing plants and strategic partnerships in thermal and renewable energy projects.
It is also shifting unit operations from liquid fuel dependence to natural gas, while rehabilitating and extending the lifespan of older assets to support energy security during peak demand periods.
Total generation capacity rose in the first quarter of 2026 to 56.9GW, an increase of 716 megawatts compared with the previous year, driven primarily by plant life-extension programs and capacity upgrades.
Plant availability also improved, reaching 79.6 percent compared with 76.9 percent in the same period last year, reflecting planned maintenance scheduling during periods of lower seasonal demand, contributing to stronger operational readiness during peak demand periods.
The company signed a 31-year power purchase agreement with the Saudi Power Procurement Co. for the Rabigh 2 Independent Power Plant expansion project, with a capacity of 2.3GW. It holds a 40 percent stake in the project, which has a total cost of SR11.5 billion.
SE also signed a 25-year power conversion agreement for the Rabigh 1 expansion project. The undertaking, which has a cost of SR5.3 billion, is expected to begin operations in the second quarter of 2027, further strengthening SE’s gas-fired generation portfolio.
By the end of the first quarter of 2026, 14.4GW of renewable energy capacity had been connected to the grid. In addition, battery energy storage systems with a total capacity of 8GW-hours were commissioned in 2025 and are currently performing in line with expectations, contributing to greater stability and flexibility in the Kingdom’s power grid.
SE continued to scale up its transmission and distribution network to support the nation’s giga-projects and accelerate industrial growth, while strengthening grid readiness to accommodate the expanding share of renewable energy.
As a result, the total number of transmission transformers and substations increased to 4,251 and 1,343, respectively, reflecting year-on-year growth of 5.7 percent and 6.1 percent. The transmission network also expanded to 106,217 circuit kilometers, marking an annual increase of 5.4 percent.
In parallel, the company expanded its distribution network to 862,597 circuit km, reflecting annual growth of 5.7 percent. Around 73,000 new customers were connected to the electricity service during the first quarter of 2026, bringing the total customer base to 11.6 million.
