According to the Tadawul announcement dated 06/03/2024, Saudi Electricity Co.(5110.SA) has disclosed its audited annual consolidated financial results for the fiscal year ending 31-12-2023. The company witnessed a 4.51% increase in sales/revenue, reaching 75,330 million Saudi Riyals, up from 72,079 million in the previous year. This growth is attributed to heightened demand for electric power, an expanding subscriber base, increased transmission system revenues, and additional revenue from Dawiyat Company due to a growing FTTH connection subscriber base, alongside new revenue from development projects.

However, the company experienced significant declines in profitability, with gross profit dropping by 21.45% to 15,521 million Riyals and net profit decreasing by 32.28% to 10,249 million Riyals. Total comprehensive income also saw a significant reduction of 39.56% to 9,845 million Riyals. The decrease in net profit is primarily due to higher operating and maintenance costs associated with business expansion and increased financing costs driven by a high-interest rate environment. Additionally, the booking of a non-recurring expense item contributed to lower net other income/expense, despite partial offset by higher operating revenues and lower net provisions for receivables due to improved collections.

The company's total shareholders' equity saw a slight decrease of 0.28%, settling at 256,318 million Riyals. The earnings per share also fell from 1.79 in the previous year to 0.62.

An unmodified external auditor's opinion was issued with no significant comments, and some comparative figures have been reclassified for consistency. Saudi Electricity Company has also announced a conference call to discuss these financial results with investors and analysts on 11-03-2024.

Meanwhile, according to another Tadawul announcement on 06/03/2024, the Board of Directors of Saudi Electricity Company (SEC) has proposed, in their meeting on 05-03-2024, a distribution of cash dividends to shareholders for the fiscal year 2023. The total dividend payout is set at approximately 2.92 billion SAR, with each of the 4.17 billion eligible shares receiving 0.70 SAR. This represents a 7% dividend relative to the share's par value.

Eligibility for the dividend distribution is designated for shareholders registered at the Securities Depository Center (Edaa) by the end of the second trading day following the General Assembly Meeting, the date of which will be announced later. Similarly, the dividend distribution date will be communicated in due course.

Furthermore, SEC highlighted the applicability of a 5% withholding tax on cash dividends for non-resident foreign investors, as per the Kingdom's Income Tax Law. Non-resident shareholders with tax exemptions are advised to contact SEC within five days from the dividend due date with necessary documentation for tax exemption consideration.