Jan 19 2012 |
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Saudi Electricity 4Q Net Loss Widens On Higher Costs
Thursday, Jan 19, 2012
(This story was originally published Wednesday)
--4Q net loss widens as energy costs swell
-- SEC typically posts losses in cooler months, swings to profit during the intense summer heat
--Result misses analyst expectations
DUBAI (Zawya Dow Jones)-- Saudi Electricity Co. (5110.SA), or SEC , the largest-listed utility in the Gulf, said Wednesday its fourth-quarter net loss widened year on year to 514 million Saudi riyals ($140 million), missing most analyst expectations, due to an increase in energy costs.
SEC , in a statement posted on the Riyadh-bourse website, said full-year 2011 net profit declined 2.5% to SAR2.22 billion, while earnings per share for the period fell to SAR0.53 from SAR0.55 in 2010.
The utility said the full-year loss was due to higher energy cost. It didn't provide further details.
SEC , whose major shareholder is the Saudi government, typically posts losses in the cooler months and swings to profit during the intense heat of the summer.
"The reported figures came in worse than last year (higher losses), and behind our expectations," NCB Capital said, adding that it remained 'neutral' on SEC with a price target of SAR14.7 and was awaiting full financials before updating its model.
"The key issue with SEC remains that the company is undergoing significant expansions plans leading to high capex and therefore higher depreciation charges. Additionally, its increased reliance on IPPs (independent power projects) and the increased cost of this, coupled with SEC 's constraints in terms of passing this on to end consumers, is holding back profitability at SEC ," NCB Capital added.
Saudi Arabia, the Middle East's biggest economy, is struggling to supply uninterrupted electricity due to a population boom and industrial expansion. SEC is expected to invest $80 billion over the next 10 years to add 30,000 megawatts of power generation capacity.
SEC shares closed flat at SAR13.55 Wednesday.
-By Dubai Bureau, Dow Jones Newswires; +9714 446-1686; djnews.dubai@dowjones.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
19-01-12 0400GMT
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