Saudi SEC Signs SAR700M in Contracts to Strengthen Power Network -SPA

Monday, Aug 13, 2012

LONDON (Zawya Dow Jones)--Saudi Electricity Co. (5110.SA), or SEC, the largest-listed utility in the Gulf, has signed contracts worth 700 million Saudi riyals ($186.7 million) to strengthen its distribution network in Riyadh and Jeddah, the state-run Saudi Press Agency, or SPA, reported Monday.

The three contracts valued individually at SAR416 million, SAR81 million and SAR200 million respectively will be to construct two power stations--one each in Riyadh and Jeddah--and extend the cable network linking power stations within the capital.

The contracts are aimed at enhancing the electricity system and "to meet the growing demand for electricity in all parts of the Kingdom and avoid power outages," said SEC president and CEO, Ali Al Barrak in a press conference Monday.

SEC shares are trading +0.4% at SAR13 in a slightly negative overall market Monday

Last month SEC said that its second quarter net profit rose 2% to SAR1.36 billion, from SAR1.34 billion a year ago, due to increased electricity demand.

-By Iman Dawoud, Dow Jones Newswires; +971 55 1093341; iman.dawoud@dowjones.com; Twitter: @ZDJnews

(END) Dow Jones Newswires

13-08-12 1200GMT