JEDDAH, 20 April 2006 -- Saudi Electricity Company (SEC) suffered a loss of SR436 million in the first quarter of this year, according to Abdul Aziz Al-Suqair, the company's chief executive. The figure was more than the losses (SR303 million) it incurred during the same period last year.
Al-Suqair said the company made a first-quarter revenue of SR3.086 billion, which is SR46 million more than last year's SR3.040 billion. He blamed the losses on increase in operation costs, which soared by SR186 million.
The losses also came as a result of substantial fall in sales during winter when people rarely use electricity. The halt in operation of some steam-powered generating units for maintenance and the use of additional oil-powered units were other reasons for the losses, the SEC chief said.
"The rights of shareholders rose by SR676 million by the end of the first quarter this year compared to last year," the Saudi Press Agency quoted Al-Suqair as saying. Losses per share rose from seven to 10 halalas during the same period.
In a related development, Jizan Governor Prince Muhammad ibn Nasser commissioned a new power plant and distribution network in Fursan island. The project was carried out at a cost of SR100 million, SPA said.
By P.K. Abdul Ghafour
© Arab News 2006
