Saudi Electricity Co (SEC), the Gulf’s largest utility firm, sank to a deeper net loss in its fourth-quarter results as it was hit by higher energy prices and increased operating costs.
The company, which the government is aiming to restructure to improve efficiency, made a net loss of 2.34 billion riyals ($624 million) in the three months to Dec. 31, according to a bourse statement on Wednesday. This compares with a loss of 1.45 billion riyals in the same period a year earlier.
NCB Capital had forecast Saudi Electricity would make a quarterly net loss of 1.04 billion riyals.
The company cited energy prices and operating costs for its wider loss but did not give details. Saudi companies issue brief earnings statements early in the reporting period before publishing more detailed results later.
In December 2015, the government raised electricity, water and fuel prices to reduce its subsidy burden; at the time, SEC said it expected little impact on its earnings, as higher fuel prices would offset increased revenues from electricity sales.
The government has indicated it intends to raise fuel and electricity prices again later this year, but has not given details.