Saudi Energy has reported robust financial and operational results for 2025, underscoring sustainable earnings growth driven by rising power demand, grid expansion, and continued digital transformation aligned with Saudi Vision 2030.
The company’s operating revenues rose 15.3% year-on-year to SAR102.2 billion, compared to SAR88.7 billion in 2024. Growth was primarily supported by higher regulated asset base returns, increased electricity production revenue amid stronger demand, and continued expansion of the subscriber base.
Gross profit climbed 18.9% to SAR20.8 billion from SAR17.5 billion in the previous year, reflecting improved operational efficiency and a stronger revenue mix. Operating profit surged 62.1% to SAR19.1 billion, supported by revenue growth and the absence of non-recurring expenses recorded in 2024, including a SAR5.7 billion one-off settlement related to historical fuel and power pricing differences.
Net profit nearly doubled to SAR12.98 billion from SAR6.87 billion in 2024, marking an 88.9% increase. The growth was partially offset by higher financing costs linked to expanded capital expenditure programs, increased provisions for trade receivables, and lower other income compared to the prior year. On a normalized basis excluding non-recurring 2024 items, operating profit and net profit rose 12.4% and 7.4%, respectively. EBITDA reached SAR41.5 billion, reflecting a 10.1% year-on-year increase.
Saudi Energy secured SAR56 billion in financing during the year through sukuk issuances, domestic and international facilities, and export credit arrangements, maintaining a balanced capital structure. The company’s credit profile remains aligned with strong investment-grade ratings comparable to the Kingdom’s sovereign rating. In 2025, S&P Global Ratings upgraded the company’s rating to A+ with a Stable outlook, while Moody’s Investors Service maintained its Aa3 rating and Fitch Ratings affirmed its A+ rating, both with Stable outlooks.
Commenting on the results, CEO Eng. Khalid bin Salem Al-Ghamdi said 2025 marked a year of operational excellence and strategic progress, highlighting disciplined capital execution that expanded the asset base, strengthened earnings growth, and enhanced system reliability despite rising demand and increasing complexity.
As part of its long-term strategy, Saudi Energy is advancing a generation project pipeline of approximately 24 GW. This includes plant expansions, thermal and renewable partnerships, fuel conversion from liquid fuels to natural gas, rehabilitation of legacy units, and life extension programs.
During 2025, the Saudi Energy–EDF Renewables consortium secured the 600 MW Samtah solar project, while a Power Purchase Agreement was signed for the 3.01 GW expansion of Qurayyah IPP. Two energy conversion agreements for Plants 13 and 14 added 3.4 GW. A total of 10 generation units were rehabilitated during the year, bringing the total rehabilitated units to 45, adding 2.1 GW and achieving a record 99% availability rate during Summer 2025.
Phase I conversion of PP10 was completed, conversion works began at Rabigh 2, and plans are underway to convert five additional plants.
By the end of 2025, 12.3 GW of renewable energy capacity had been connected to the grid. Battery energy storage systems totaling 8 GWh were commissioned, with additional storage projects amounting to 14 GWh under development.
Transmission and distribution expansion continued to support industrial growth and renewable integration. Distribution network automation reached 40.8%, customer satisfaction rose to 86%, SAIDI improved by 7%, and SAIFI improved by 15%. New customer connection time was reduced by 14%, while peak load increased 3% year-on-year to 77.1 GW.
Total company generation reached 237.8 TWh, accounting for more than 57% of total electricity production in the Kingdom. Approximately 260,000 new customers were connected during the year, bringing the total to 11.5 million. Distribution network length surpassed 859,000 circuit kilometers, up 6.6%, while transmission and fiber optic networks expanded by 4.9% and 9%, respectively, reaching over 104,600 circuit kilometers of transmission lines and 104,400 kilometers of fiber optic infrastructure.
Discover more from SolarQuarter
Subscribe to get the latest posts sent to your email.
