Saudi Electricity Co Q1 Net Loss More Than Doubles

Saudi Electricity Co (SEC), the Gulf’s largest utility firm, reported its net loss for the first quarter more than doubled on Tuesday.

It lost 1.94 billion riyals ($517.4 million) during the three months to March 31, compared to a loss of 913 million riyals during the corresponding period of 2014, it said in a bourse statement.

This was worse than NCB Capital’s forecast of a net loss of 1.27 billion riyals in the quarter.

The utility cited the costs of implementing an order from the electricity regulator on power usage by top manufacturers, as well as other expenses, for the decline in earnings. It did not elaborate.

Saudi companies issue brief earnings statements early in the reporting period before publishing more detailed results later.

During the first quarter, the firm paid 545 million riyals to employees in bonuses as part of a scheme to celebrate the Saudi royal succession.

SEC’s results are highly seasonal because of the big swing between power demand in winter and in summer, when high temperatures lead most homes and businesses to rely on extensive air conditioning.