UPDATE: Saudi Electricity 4Q Net Loss Widens On Higher Costs

Wednesday, Jan 18, 2012

--4Q net loss widens as energy costs swell

--SEC typically posts losses in cooler months, swings to profit during the intense summer heat

(Adds details, background.)

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.

Kuwait-based Global Investment House analysts had seen SEC reporting a SAR155.3 million net loss for the period.

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.

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 0.7% down at SAR13.55 Tuesday.

-By Dubai Bureau, Dow Jones Newswires; +9714 446-1686; djnews.dubai@dowjones.com

(END) Dow Jones Newswires

18-01-12 0740GMT