Saudi Energy profits boom

• Net profit up 89% in first quarter
• Demand rising on mega-projects
• Population growth also cited

Profits have soared at Saudi Arabia’s main electricity provider amid booming demand from mega-projects and population growth.

Saudi Energy, previously known as Saudi Electricity Company, reported an 89 percent rise in net profit to SAR1.8 billion ($480 million) in the first quarter. Revenues increased 9 percent to SAR21.3 billion.

Chief executive Khalid bin Salem Al-Ghamdi said electricity demand was rising because of “economic diversification, mega-projects, population growth and the transition towards a more diversified energy mix”.

He added that the company’s performance had been supported by “continued expansion” of its infrastructure base and improvements in efficiency.

Saudi Arabia’s population reached more than 35 million in 2024, up from around 21 million in 2014, according to the country’s General Authority for Statistics.

The surge in profit comes as Saudi Arabia has been pouring billions into giant developments including Neom, tourism, industrial schemes and data centres as part of Vision 2030, all of which require huge amounts of electricity.

The kingdom is rapidly expanding artificial intelligence infrastructure and data centres, a move expected to place more pressure on the country’s electricity grid over the next few years.

State-backed AI company Humain said in January it had agreed a financing framework worth up to $1.2 billion to support the development of up to 250 megawatts of hyperscale AI data centre capacity.

Saudi Energy said it now serves 11.6 million customers after connecting another 73,000 during the quarter.

Further reading:

• Saudi Energy and Acwa to spend $3bn on Mecca power plant
• Long recovery even if war ends now: Saudi minister
• Saudi petchems stand to benefit from higher oil prices

The Public Investment Fund-backed utility operates under a regulated model that allows it to earn returns from building and running electricity infrastructure. This means revenues rise as the size of the network expands.

The company continued rolling out transmission lines, substations and distribution networks across the kingdom during the quarter, while generation capacity reached 57 gigawatts by the end of March.

Saudi Energy also made investments outside its core business during the quarter, taking stakes in a Saudi 3D-printing company and a digital energy platform business as it pushes further into technology and industrial services.

The company said shareholders had approved cash dividends totalling SAR3 billion for the 2025 financial year.