The Clap
Saudi Electric Company’s (5110) profits dipped by 5.59% in Q2 2022, reaching SAR 5.5 billion.
The Deets
The company attributed the decrease in its profits due to the increase in accounts receivables. This happened despite the increase in revenues, which increased as a result of the increased demand for electricity in KSA.
The increase in revenues helped offset the increase in operating and admin expenses, however, not enough to maintain profit at the same level as 2021.
Saudi Electric Company’s Customer Debt
The Saudi government deducts SAR 1.9 billion every 3 months from the company’s net income based on an agreement that covers obligations owed to the government by the company.
These obligations amount to SAR 167.9 billion and represent the largest Islamic financing deal in the world.
Saudi Electric Company’s profits dip 👎
