Would you like to receive notifications on latest updates of the following headlines?

Revenue Growth Boosts Profitability of Saudi Public Utility Coys

POSTED ON August 12, 2024 •   Business      BY Abiodun Saheed Omodara
Qiddiya Project in Saudi Arabia

Public utility companies listed on the Saudi Stock Exchange (Tadawul) achieved a 15.76 per cent growth in their net profits by the end of the first half of 2024, reaching SAR 6.56 billion ($1.75 billion), compared to SAR 5.67 billion ($1.51 billion) during the same period in 2023.

The companies recorded a 14-per cent growth in their revenues during the same half, equivalent to SAR 5.79 billion ($1.54 billion), after achieving sales worth more than SAR 46.76 billion ($12.47 billion) during the first half of 2024, compared to SAR 40.98 billion ($10.93 billion) in the same period last year.

This growth in revenues and net profitability is a result of an increase in sales and revenues, the launch of new projects and rise in the number of subscribers and demand for services.

The sector includes six companies: Saudi Electricity Company, ACWA Power, Alkhorayef Water and Energy Technology, Marafiq, National Gas and Industrialisation Company (GASCO), and Miyahuna.

According to the financial results announced on Tadawul, all companies in the sector achieved growth in profits, except for Marafiq, which recorded a decline in profits by 59.37 per cent to SAR 108.13 million.

In comments to Asharq Al-Awsat, financial advisor at the Arab Trader Mohammad Al-Maymouni said that Alkhorayef Company has driven this boost in profitability by registering the highest growth rates, as a result of recovery in the areas of development, design and production.

ACWA Power had also a strong impact on the growth of the sector’s profits, Al-Maymouni noted, thanks to the increased activity of water and energy supply projects and the cost of maintenance revenues, which contributed to the overall rise in the company’s revenues.

The cost of energy and fuel, as well as financing costs and interest rates, are the greatest burden on the profits of companies in the sector as they contributed significantly to the decline in the profitability of Marafiq by 59 per cent during the second quarter of 2024, he noted.

Al-Maymouni highlighted factors that would support the profitability of the sector, such as continuity of projects acquired by sector companies, infrastructure and wastewater development operations, and lower financing costs and interest rates during the coming quarters.

READ ALSO
UK, Nigeria unite to boost trade, economic growth through quality standards
BY Abiodun Saheed Omodara March 3, 2025 0

The governments of the United Kingdom and Nigeria have reiterated their dedication to enhancing trad...

READ ALSO
SERAP demands suspension of CBN's ATM fee increase as legal case unfolds
BY Abiodun Saheed Omodara March 3, 2025 0

LAGOS,Nigeria - The Socio-Economic Rights and Accountability Project (SERAP), a non-profit organizat...

READ ALSO
Scam Alert: N329m lost in BVN fraud as agents register static images
BY Abiodun Saheed Omodara March 2, 2025 0

Fraudsters have stolen N329 million by utilizing static images to register for Bank Verification Num...

READ ALSO
S’Africa support Tshabalala's candidacy for AfDB, aiming for economic transformation
BY Abiodun Saheed Omodara February 28, 2025 0

The government of South Africa has shown its support for financial strategist and former Senior Vice...

READ ALSO
Dangote slashes petrol prices again, offering relief to Nigerians
BY Abiodun Saheed Omodara February 27, 2025 0

Dangote Petroleum Refinery & Petrochemicals has reduced the price of Premium Motor Spirit (PMS),...

READ ALSO
Tinubu's call for investment sparks concerns in Belgium over future oil trade
BY Abiodun Saheed Omodara February 26, 2025 0

Belgium has expressed concerns regarding the possible loss of a significant share of its petroleum p...

READ ALSO
Anambra assembly voices concerns over Onitsha drug market closure impacting local economy
BY Abiodun Saheed Omodara February 26, 2025 0

ANAMBRA, Nigeria (NAN) - The Anambra House of Assembly has adopted a resolution urging the National...

READ ALSO
Consumer protection agency challenges MultiChoice over unilateral price increases
BY Abiodun Saheed Omodara February 26, 2025 0

The Federal Competition and Consumer Protection Commission (FCCPC) has called on MultiChoice Nigeria...

OUR CHANNELS:

Fuel Price Adjustment: Dangote Refinery offers N65 reimbursement to customers amid price cut
BY Abiodun Saheed Omodara March 3, 2025 0

Dangote Petroleum Refinery & Petrochemicals has declared its intention to reimburse customers wh...


Fubara orders new LG elections following Supreme Court ruling
BY Abiodun Saheed Omodara March 3, 2025 0

PORT HARCOURT- The governor of Rivers State, Siminalayi Fubara, has instructed the Rivers State Inde...


SERAP demands suspension of CBN's ATM fee increase as legal case unfolds
BY Abiodun Saheed Omodara March 3, 2025 0

LAGOS,Nigeria - The Socio-Economic Rights and Accountability Project (SERAP), a non-profit organizat...


ITF commences onboarding for Artisan trainees in groundbreaking skill development initiative
BY Abiodun Saheed Omodara March 3, 2025 0

ABUJA,Nigeria (NAN)- The Industrial Training Fund (ITF) has announced the commencement of onboarding...


NDLEA nabs Angolan Tycoon with 120 pellets at Kano Airport
BY Abiodun Saheed Omodara March 2, 2025 0

The National Drug Law Enforcement Agency (NDLEA) has apprehended a 42-year-old Angolan businessman,...


Chief Imam urges Muslim Men to support wives during Ramadan
BY Abiodun Saheed Omodara March 3, 2025 0

The Chief Imam of Ajiyobiojo Central Mosque in Ilorin, Kwara State, Saheed Ajiyobiojo, has urged Mus...


Inflation Surges: Nigerians advocate for policies to support economic stability and growth
BY Abiodun Saheed Omodara March 3, 2025 0

Nigerians have urged the federal government to put in place effective measures to curb inflation and...


WHO urges African governments to take charge of their healthcare system
BY Abiodun Saheed Omodara March 2, 2025 0

ABUJA,Nigeria - The Acting Regional Director of the World Health Organization (WHO) for the Africa R...


Scam Alert: N329m lost in BVN fraud as agents register static images
BY Abiodun Saheed Omodara March 2, 2025 0

Fraudsters have stolen N329 million by utilizing static images to register for Bank Verification Num...


FG launch Alau Dam with 80bn reconstruction fund
BY Abiodun Saheed Omodara March 2, 2025 0

Borno, Nigeria (NAN) - The federal government, through the Federal Ministry of Water Resources and S...


More Articles

Load more...

Menu