Saudi Electricity Company, known as the Saudi Electricity Company, is the cornerstone of the electric power sector in the Kingdom of Saudi Arabia. The company was established at the beginning of the current millennium after merging several regional electricity companies, thus becoming the largest electric power provider in the Kingdom, covering all regions through electricity production, transmission, and distribution operations. The company was listed on the Saudi financial market (Tadawul) in 2008 under the symbol 5110, with the Saudi government holding a majority stake, providing strategic support to ensure stable electricity supplies at subsidized costs for consumers. The Saudi electricity sector plays a pivotal role in achieving the goals of the Kingdom's Vision 2030, as this sector is classified among the core regulated sectors, witnessing continuous developments in terms of modernization, expansion of renewable energy sources, and improvement of operational efficiency. In this article, we review the financial performance details of Saudi Electricity Company, its organizational structure, key projects and challenges, in addition to analyzing the Saudi electricity sector and clarifying the most frequently asked questions about the company. This analysis relies on the latest official financial data and specialized reports, aiming to provide educational and objective content for those interested in following the Saudi energy sector.
Origins and Development: Roots of Saudi Electricity Company and Its National Role
Saudi Electricity Company was established in 2000 following the merger of several independent regional electricity companies operating in different areas of the Kingdom, a strategic step aimed at unifying efforts, integrating electrical networks, and improving operational efficiency. Since then, the company has become the main provider of electric power, managing a comprehensive network that includes generation stations, transmission and distribution networks covering all urban and rural areas in the Kingdom. With significant government support, especially with the state retaining a majority stake in the company's capital, Saudi Electricity has become a fundamental pillar in national development and meeting the needs of rapid population, urban, and industrial growth. The company's shares were listed on the Saudi financial market under the symbol 5110 in 2008, allowing individual and institutional investors to monitor its performance and participate in its ownership. The company is overseen by the Electricity and Co-Generation Regulatory Authority in the Ministry of Energy, ensuring compliance with government and regulatory policies and enhancing its ability to achieve sustainability in electricity supplies.
Organizational Structure and Ownership: The Role of Government and Strategic Partners
Saudi Electricity Company features a predominantly government ownership structure, with the Saudi government retaining a majority stake, while the remaining ownership is distributed among investment institutions, pension funds, and individual investors through the Saudi financial market. This structure provides the company with financial stability and strategic support, enabling it to access the necessary funding to execute major projects. Oversight by the Ministry of Energy and the Electricity Regulatory Authority ensures a balance between achieving returns for shareholders and meeting public service requirements, especially given the subsidized prices for consumers. In terms of management, the company adopts an advanced organizational structure that includes a board of directors comprising representatives from government entities and the private sector, along with specialized committees such as the Audit Committee and the Risk Committee, enhancing governance and transparency in financial and operational decision-making.
Financial Performance Analysis of Saudi Electricity Company: Revenues, Profits, and Distributions
Recent financial data indicates that Saudi Electricity Company achieved strong performance during 2024 and 2025. The latest share price was approximately 14.56 Saudi Riyals, with the company's market capitalization estimated at around 60.66 billion Saudi Riyals. In terms of profitability, the company recorded a net profit after zakat and tax of 4.91 billion Riyals during the first nine months of 2025, with 3.05 billion Riyals in the third quarter alone. The company also experienced a 22% growth in net profit during the second quarter of 2025 compared to the same period in 2024, reflecting improvements in operational efficiency and increased demand for electricity. Regarding distributions, the recent general assembly approved cash dividends in May 2025, and the distribution policy is moderate, considering the balance between investing in new projects and providing returns to shareholders. It is worth noting that some indicators, such as the price-to-earnings (P/E) ratio, may be affected by the application of international accounting standards, sometimes reflecting seemingly high levels without necessarily impacting actual cash flows.
Revenue Growth and Project Expansion: Growth Drivers and Company Trends
Saudi Electricity Company has witnessed steady revenue growth in recent years, supported by increased demand for energy due to urban, industrial, and tourism expansion in the Kingdom. Support for Saudi Vision 2030 for infrastructure and sustainable development projects has created new opportunities for the company through generation, transmission, and distribution projects. For instance, the company secured financing agreements exceeding $4 billion in 2025 to support its expansion and network modernization plans. It also signed a Power Purchase Agreement (PPA) worth 1.37 billion Riyals for a solar energy project in the Samta area, aligning with its focus on renewable energy sources. The company's commitment to modernizing the electrical network and enhancing its operational efficiency supports continued revenue growth and contributes to its ability to meet the increasing demand for electricity in the Kingdom.
The Electricity Sector in Saudi Arabia: Sector Characteristics and Strategic Role
The Saudi electricity sector is classified among the core regulated sectors, playing a pivotal role in achieving economic and social development. The sector is characterized by stable demand due to substantial government support and subsidized electricity prices for local consumers. Regulatory authorities control tariff setting, ensuring reliable service while encouraging investment in renewable energy projects. Despite the presence of some independent power producers (IPPs) competing in generation projects, Saudi Electricity Company remains the main operator of the national distribution network. This distinction enhances the company's position in the market and provides it with stable cash flows, while facing challenges related to the application of international accounting standards, network modernization, and the adoption of clean energy technologies.
Competition in the Saudi Electricity Market: Key Players and Market Structure
Although Saudi Electricity Company dominates the distribution sector, the Saudi market sees the presence of several players in the energy production field. Independent companies such as ACWA Power compete in the generation sector by establishing and operating private stations and selling electricity to Saudi Electricity Company through long-term Power Purchase Agreements. Companies like Marafiq participate in managing networks in some industrial areas, while the Saudi Electricity Transmission Company (SETCO) works on developing transmission network infrastructure. The renewable energy sector sees the entry of local and international companies in solar and wind energy projects. Nevertheless, competition in distribution remains limited due to the government's control over the company, while competition is primarily focused on improving efficiency and reducing operational costs.
Regulatory Reforms and Transformation in the Electricity Sector: The Impact of Vision 2030
The Saudi government, under Vision 2030, aims to restructure the electricity sector to increase efficiency and enhance the role of the private sector in generation. The reforms include separating generation activities from distribution, allowing Saudi Electricity Company to focus on distribution and operation, while providing greater opportunities for independent companies in energy production. Regulatory authorities impose high-quality standards and target network modernization through the introduction of smart grid technologies and increased reliance on renewable energy sources. These transformations have reflected on the company's financial performance through the transfer of assets and liabilities between entities, yet the company remains the main operator of the national electrical network, benefiting from government support and stable demand.
Future Company Projects: Renewable Energy and Network Expansion
Saudi Electricity Company prioritizes investment in renewable energy projects and updating the electrical network to support sustainable development. Among the notable recent projects is the signing of a Power Purchase Agreement (PPA) worth 1.37 billion Riyals to establish a solar power station in Samta, along with a memorandum of understanding with the Soudah Development Project and NATIONAL GRID to develop electrical infrastructure in the Soudah tourist area. The company also seeks to localize technologies and improve transmission and distribution efficiency by introducing smart grid solutions, aligning with the government's direction to reduce emissions and adopt clean energy sources. These projects enhance the company's ability to meet the increasing demand requirements and achieve sustainability goals within the framework of Vision 2030.
Impact of International Accounting Standards on Financial Results
The application of International Financial Reporting Standards (IFRS), particularly IFRS 16 related to operating leases, has led to significant changes in the financial statements of Saudi Electricity Company. Liabilities recorded on the balance sheet have increased, affecting the net profit reported in financial statements for certain periods, although operating cash flows have not been directly impacted. These changes have led to a rise in indicators such as the price-to-earnings (P/E) ratio, requiring observers to read financial analyses cautiously and understand the influencing accounting factors. Despite these challenges, the company continues to achieve strong operating profits, benefiting from stable demand and operational efficiency.
Risk and Challenge Analysis: Influential Internal and External Factors
Saudi Electricity Company faces several risks and challenges that require effective management. Among the most significant are: changes in government support policies or tariff adjustments, which may impact the company's profitability. Additionally, rising financing obligations due to expanded funding for major projects may increase interest and debt burdens. Changes in international accounting standards place pressure on accounting profits, while the entry of new companies in the generation sector poses a challenge to profitability levels. Furthermore, the Kingdom's and the world's shift towards clean energy requires the company to continuously invest in renewable sources and update networks. However, government support and the company's position as a main operator provide a degree of stability compared to private companies.
Modern Technologies and Digital Transformation in Saudi Electricity Company
Saudi Electricity Company is increasingly focusing on adopting modern technologies and digital transformation across all its operational processes. This includes developing smart grid systems that enable better monitoring and control of energy flow, enhancing efficiency and reliability. The company is also working on localizing technologies in generation and transmission stations, launching pilot projects for renewable energy such as solar and wind power. These efforts contribute to improving service quality and reducing operational costs, while supporting the national direction towards digital transformation and sustainable development.
Company Stock Performance in the Saudi Financial Market (Tadawul)
Saudi Electricity Company is listed on the Saudi financial market under the symbol 5110, and its stock experiences active daily trading reflecting the company's size and investor confidence in the stability of the electricity sector. The stock price recently reached approximately 14.56 Saudi Riyals, with a market capitalization nearing 60.66 billion Riyals. Historically, the stock has shown relative stability, supported by steady demand and government backing. Regular cash distributions have attracted a segment of investors seeking stable income, although accounting factors may impact apparent profitability indicators. Monitoring stock performance requires keeping up with quarterly reports, regulatory updates, and expansion projects undertaken by the company.
Sources of Information and Official Financial Reports
Monitoring the performance of Saudi Electricity Company relies on official and reliable sources, primarily the company's official website (www.se.com.sa), the Saudi financial market platform (Tadawul), in addition to financial news sites like Argaam and Al-Eqtisadiah that provide detailed reports on business results, distributions, and significant events. The company also publishes its periodic financial reports and details of future projects through its digital platforms. For investors and interested parties, regularly reviewing these sources is essential for understanding sector developments and analyzing the company's performance objectively.
Conclusion
Saudi Electricity Company plays a pivotal role in supporting economic and social development in the Kingdom of Saudi Arabia, being the largest electric power provider and operator of the national network. The company benefits from strong government support and stable demand, providing it with a stable financial position and regular cash flows. However, the company faces increasing challenges such as network modernization, adopting renewable energy, and adapting to accounting and regulatory changes. The company's recent financial performance reflects steady growth in profits and revenues, supported by major expansion projects and ambitious investment plans. It is essential for those interested in the Saudi electricity sector to regularly follow regulatory and financial developments and rely on reliable and objective sources. Always remember that making any investment decision requires consulting a licensed financial specialist, and you can rely on the SIGMIX platform for trustworthy financial analyses and news, while assessing risks and opportunities objectively before taking any investment step.
Frequently Asked Questions
Saudi Electricity Company is traded on the Saudi financial market (Tadawul) under the symbol 5110. It is sometimes referred to by the abbreviation SEC on trading platforms and is listed under the Utilities sector. You can follow stock news and daily trading data through the Tadawul website or specialized financial news sites like Argaam and Al-Eqtisadiah.
The price of Saudi Electricity Company's stock is approximately 14.56 Saudi Riyals according to the latest available trading data. The stock experiences active daily trading, with the trading volume in one of the recent sessions reaching about 1.066 million shares. The stock is considered relatively liquid in the Saudi market, attracting the interest of investors seeking stability and periodic returns.
Saudi Electricity Company has achieved significant growth in its profits during 2024 and 2025. In the second quarter of 2025, net profit reached 3.06 billion Riyals, an increase of 22% compared to the same period the previous year, and total profit for the first nine months of 2025 reached 4.91 billion Riyals. This performance reflects improvements in operational efficiency and increased demand for electricity, despite some accounting pressures resulting from new international standards.
Saudi Electricity Company follows a policy of periodic cash dividend distribution, often semi-annually. In May 2025, the general assembly approved cash dividends for shareholders. The yield ratio depends on the stock price and the volume of distributions, and is usually moderate compared to some other market sectors, considering the balance between investing in expansions and providing sustainable returns to shareholders.
The company focuses on updating the electrical network, expanding into renewable energy such as solar and wind projects, and developing infrastructure in new areas like Soudah. The company has recently secured financing agreements exceeding $4 billion to support its expansion plans and aims to localize technologies and improve transmission and distribution efficiency in line with national sustainability goals.
Saudi Electricity Company dominates the national distribution sector, so there is no direct competition in this area. In the generation sector, independent companies like ACWA Power are present through long-term Power Purchase Agreements. Companies like Marafiq and SETCO are involved in some specialized sectors. Competition is primarily focused on improving operational efficiency and reducing costs, while the government company remains in a leading position.
The application of international accounting standards, such as IFRS 16 related to operating leases, has led to an increase in liabilities recorded on the balance sheet, which has seemingly affected net profit and the price-to-earnings (P/E) ratio. However, the core operating cash flows have not been substantially affected, and the company continues to achieve strong operating profits. Analyzing financial performance requires an understanding of temporary accounting factors and their impact on reported results.
Risks include changes in government support policies or tariff adjustments, rising financing obligations with expanded funding for major projects, the impact of applying international accounting standards on apparent results, the entry of new companies competing in the generation sector, and the requirements for transitioning to renewable energy. Nevertheless, the company enjoys a strong position and government support that mitigates risks compared to private companies.
Financial data, quarterly and annual reports of the company can be followed through the official website of Saudi Electricity Company, the Saudi financial market platform (Tadawul), and financial news sites like Argaam and Al-Eqtisadiah. The company also publishes disclosures and significant events through its digital platforms, and interested parties can review performance details and projects through these reliable sources.
The company plays a pivotal role in supporting sustainable development and achieving the goals of Vision 2030 by expanding renewable energy projects, updating networks, enhancing operational efficiency, and enabling the private sector to participate in energy production. The company seeks to balance continuing to provide public service while investing in new technologies that align with the national transition towards clean energy and a sustainable economy.