Saudi Electricity’s net profit down 64% in 9M 2019

Saudi Electricity’s net profit down 64% in 9M 2019

05/11/2019 Argaam Exclusive

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Saudi Electricity Company’s net profit after zakat and tax during the first nine months of 2019 declined 64 percent year-on-year (YoY) to SAR 1.9 billion, compared to SAR 5.5 billion during the same period in 2018, the company said in a bourse filing announcing its interim financial results.



Financials (M)

Item 9m 2018 9m 2019 Change‬
Revenues 51,032.59 48,746.05 (4.5 %)
Gross Income 8,285.86 4,943.83 (40.3 %)
Operating Income 7,357.58 4,030.47 (45.2 %)
Net Income after deducting Mudaraba Instrument profit 5,557.98 1,978.93 (64.4 %)
Average Shares 4,166.59 4,166.59 -
EPS after deducting Mudaraba Instrument profit (Riyals) 1.33 0.47 (64.4 %)

The decrease in net profit for the current period is mainly due to lower electricity sales as a result of lower volume of electric power sold, the company said.

 

This was primarily driven by consumption rationalization especially from residential and commercial segments, coupled with higher depreciation cost and higher finance charges.

 

In Q3, the company reported net profit of SAR 2.6 billion, down 45 percent compared to SAR 4.9 billion in the same period last year.

 

The decline in net profit for the current quarter is attributed to lower electricity sales due to lower volume of electric power sold, the company said.

 

On a sequential basis, the net profit in the current quarter rose 239 percent.



Current Quarter Comparison (M)

Compared With The
Item Q3 2018 Q3 2019 Change‬
Revenues 21,930.17 20,830.54 (5.0 %)
Gross Income 5,970.99 3,759.55 (37.0 %)
Operating Income 5,697.76 3,419.16 (40.0 %)
Net Income 4,925.47 2,679.39 (45.6 %)
Average Shares 4,166.59 4,166.59 -
EPS (Riyals) 1.18 0.64 (45.6 %)


Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2010 4,566.27 11.8 % (730.39) 11.9 % (782.22) (1.5 %) (0.19)
Q2 2010 7,368.79 15.2 % 1,127.67 63.4 % 1,068.45 49.5 % 0.26
Q3 2010 9,444.84 19.8 % 2,413.73 20.9 % 2,316.63 33.9 % 0.56
Q4 2010 6,531.09 19.0 % (218.35) 47.7 % (323.78) 39.1 % (0.08)
Q1 2011 5,310.46 16.3 % (680.93) 6.8 % (773.69) 1.1 % (0.19)
Q2 2011 8,347.71 13.3 % 1,455.61 29.1 % 1,334.78 24.9 % 0.32
Q3 2011 9,944.76 5.3 % 2,387.02 (1.1 %) 2,174.54 (6.1 %) 0.52
Q4 2011 6,966.67 6.7 % (460.21) (110.8 %) (522.48) (61.4 %) (0.13)
Q1 2012 5,940.77 11.9 % (366.16) 46.2 % (583.35) 24.6 % (0.14)
Q2 2012 9,064.93 8.6 % 1,400.84 (3.8 %) 1,360.33 1.9 % 0.33
Q3 2012 10,890.00 9.5 % 3,038.32 27.3 % 2,875.39 32.2 % 0.69
Q4 2012 7,750.56 11.3 % (464.76) (1.0 %) (1091.30) (108.9 %) (0.26)
Q1 2013 6,423.27 8.1 % (576.52) (57.5 %) (657.36) (12.7 %) (0.16)
Q2 2013 9,307.42 2.7 % 799.56 (42.9 %) 1,502.27 10.4 % 0.36
Q3 2013 11,804.47 8.4 % 2,914.36 (4.1 %) 2,852.83 (0.8 %) 0.68
Q4 2013 8,136.98 5.0 % (495.98) (6.7 %) (661.88) 39.3 % (0.16)
Q1 2014 7,069.18 10.1 % (864.11) (49.9 %) (913.35) (38.9 %) (0.22)
Q2 2014 10,489.73 12.7 % 1,341.82 67.8 % 3,657.81 143.5 % 0.88
Q3 2014 12,472.87 5.7 % 2,813.69 (3.5 %) 2,668.33 (6.5 %) 0.64
Q4 2014 8,458.89 4.0 % (1255.35) (153.1 %) (1801.80) (172.2 %) (0.43)
Q1 2015 7,485.98 5.9 % (1246.39) (44.2 %) (1939.69) (112.4 %) (0.47)
Q2 2015 11,917.40 13.6 % 2,122.48 58.2 % 1,970.64 (46.1 %) 0.47
Q3 2015 13,176.21 5.6 % 3,023.16 7.4 % 2,921.06 9.5 % 0.70
Q4 2015 8,985.19 6.2 % (1344.46) (7.1 %) (1444.55) 19.8 % (0.35)
Q1 2016 8,894.70 18.8 % (342.01) 72.6 % (798.31) 58.8 % (0.19)
Q2 2016 13,194.13 10.7 % 2,790.68 31.5 % 2,242.00 13.8 % 0.54
Q3 2016 17,132.99 30.0 % 5,587.18 84.8 % 4,928.41 68.7 % 1.18
Q4 2016 10,639.18 18.4 % (1183.38) 12.0 % (1826.85) (26.5 %) (0.44)
Q1 2017 8,920.29 0.3 % (653.65) (91.1 %) 4,935.78 718.3 % 1.18
Q2 2017 13,301.83 0.8 % 2,691.06 (3.6 %) 2,231.59 (0.5 %) 0.54
Q3 2017 16,986.31 (0.9 %) 5,608.94 0.4 % 5,261.87 6.8 % 1.26
Q4 2017 11,476.56 7.9 % (956.35) 19.2 % (5521.23) (202.2 %) (1.33)
Q1 2018 11,401.27 27.8 % (623.99) 4.5 % (1214.05) (124.6 %) (0.29)
Q2 2018 17,701.15 33.1 % 2,938.85 9.2 % 1,846.55 (17.3 %) 0.44
Q3 2018 21,930.17 29.1 % 5,970.99 6.5 % 4,925.47 (6.4 %) 1.18
Q4 2018 13,031.05 13.5 % (2366.24) (147.4 %) (3800.84) 31.2 % (0.91)
Q1 2019 11,395.24 (0.1 %) (636.38) (2.0 %) (1489.23) (22.7 %) (0.36)
Q2 2019 16,520.27 (6.7 %) 1,820.66 (38.0 %) 788.77 (57.3 %) 0.19
Q3 2019 20,830.54 (5.0 %) 3,759.55 (37.0 %) 2,679.39 (45.6 %) 0.64

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2010 6.33 % 34.96 % 4.65 %
Q2 2010 7.81 % 35.61 % 5.87 %
Q3 2010 8.91 % 37.64 % 7.71 %
Q4 2010 9.29 % 36.65 % 8.17 %
Q1 2011 9.22 % 36.95 % 7.98 %
Q2 2011 10.02 % 38.06 % 8.62 %
Q3 2011 9.77 % 37.76 % 8.00 %
Q4 2011 8.84 % 38.83 % 7.65 %
Q1 2012 9.67 % 40.17 % 8.27 %
Q2 2012 9.28 % 40.05 % 8.25 %
Q3 2012 10.99 % 41.40 % 10.21 %
Q4 2012 10.72 % 40.82 % 9.50 %
Q1 2013 9.96 % 40.18 % 9.00 %
Q2 2013 8.14 % 38.70 % 7.14 %
Q3 2013 7.57 % 38.21 % 6.83 %
Q4 2013 7.40 % 38.44 % 6.47 %
Q1 2014 6.48 % 37.80 % 5.65 %
Q2 2014 7.72 % 39.12 % 6.92 %
Q3 2014 7.32 % 39.38 % 6.32 %
Q4 2014 5.29 % 38.10 % 3.94 %
Q1 2015 4.25 % 38.05 % 1.26 %
Q2 2015 6.04 % 39.41 % 2.83 %
Q3 2015 6.44 % 39.94 % 3.40 %
Q4 2015 6.15 % 39.64 % 3.14 %
Q1 2016 8.05 % 39.45 % 5.69 %
Q2 2016 9.33 % 38.66 % 6.14 %
Q3 2016 13.88 % 39.88 % 9.80 %
Q4 2016 13.74 % 38.65 % 9.34 %
Q1 2017 13.11 % 38.91 % 8.56 %
Q2 2017 12.88 % 39.68 % 8.52 %
Q3 2017 12.97 % 41.21 % 9.21 %
Q4 2017 13.20 % 41.47 % 6.68 %
Q1 2018 12.64 % 40.23 % 6.31 %
Q2 2018 12.10 % 38.46 % 5.16 %
Q3 2018 11.73 % 36.01 % 4.21 %
Q4 2018 9.24 % 33.58 % 2.74 %
Q1 2019 9.22 % 34.44 % 2.31 %
Q2 2019 7.62 % 33.97 % 0.67 %
Q3 2019 4.17 % 31.96 % (2.95 %)


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2010 4,166.59 0.27 0.27 11.43
Q2 2010 4,166.59 0.36 0.36 11.58
Q3 2010 4,166.59 0.50 0.50 12.14
Q4 2010 4,166.59 0.55 0.55 12.06
Q1 2011 4,166.59 0.55 0.55 11.88
Q2 2011 4,166.59 0.61 0.61 12.05
Q3 2011 4,166.59 0.58 0.58 12.55
Q4 2011 4,166.59 0.53 0.56 12.45
Q1 2012 4,166.59 0.58 0.62 12.30
Q2 2012 4,166.59 0.58 0.63 12.54
Q3 2012 4,166.59 0.75 0.81 13.20
Q4 2012 4,166.59 0.61 0.77 12.83
Q1 2013 4,166.59 0.60 0.74 12.67
Q2 2013 4,166.59 0.63 0.59 12.91
Q3 2013 4,166.59 0.63 0.58 13.60
Q4 2013 4,166.59 0.73 0.55 13.51
Q1 2014 4,166.59 0.67 0.49 13.32
Q2 2014 4,166.59 1.18 0.62 14.08
Q3 2014 4,166.59 1.14 0.58 14.72
Q4 2014 4,166.59 0.87 0.36 14.22
Q1 2015 4,166.59 0.62 0.12 13.75
Q2 2015 4,166.59 0.22 0.27 14.10
Q3 2015 4,166.59 0.28 0.33 14.79
Q4 2015 4,166.59 0.36 0.31 14.48
Q1 2016 4,166.59 0.64 0.59 14.16
Q2 2016 4,166.59 0.70 0.65 14.38
Q3 2016 4,166.59 1.18 1.13 15.43
Q4 2016 4,166.59 1.09 1.12 15.74
Q1 2017 4,166.59 2.47 1.02 16.93
Q2 2017 4,166.59 2.46 1.02 17.33
Q3 2017 4,166.59 2.54 1.10 18.59
Q4 2017 4,166.59 1.66 0.81 17.35
Q1 2018 4,166.59 0.18 0.81 16.97
Q2 2018 4,166.59 0.09 0.71 17.29
Q3 2018 4,166.59 0.01 0.63 18.50
Q4 2018 4,166.59 0.42 0.42 17.68
Q1 2019 4,166.59 0.36 0.36 17.29
Q2 2019 4,166.59 0.10 0.10 17.25
Q3 2019 4,166.59 (0.44) (0.44) 17.88

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2010 46.22 46.22 1.10
Q2 2010 35.63 35.63 1.10
Q3 2010 29.37 29.37 1.20
Q4 2010 4.82 4.82 1.16
Q1 2011 25.23 25.23 1.17
Q2 2011 22.43 22.43 1.14
Q3 2011 22.98 22.98 1.06
Q4 2011 4.91 4.65 1.12
Q1 2012 27.74 25.84 1.30
Q2 2012 22.13 20.42 1.03
Q3 2012 17.44 16.27 0.99
Q4 2012 4.09 3.28 1.04
Q1 2013 23.71 19.20 1.12
Q2 2013 20.44 21.89 1.00
Q3 2013 21.26 22.98 0.98
Q4 2013 3.75 4.93 1.08
Q1 2014 23.61 32.00 1.18
Q2 2014 13.30 25.27 1.12
Q3 2014 15.13 29.80 1.17
Q4 2014 3.22 7.68 1.05
Q1 2015 28.16 More than 100 1.27
Q2 2015 79.95 62.81 1.22
Q3 2015 59.41 48.98 1.11
Q4 2015 8.14 9.40 1.08
Q1 2016 25.10 27.17 1.13
Q2 2016 27.89 29.96 1.36
Q3 2016 14.26 14.86 1.09
Q4 2016 3.88 3.79 1.43
Q1 2017 9.40 22.62 1.37
Q2 2017 10.35 24.94 1.47
Q3 2017 9.39 21.68 1.29
Q4 2017 2.38 4.86 1.21
Q1 2018 More than 100 25.75 1.22
Q2 2018 More than 100 29.20 1.20
Q3 2018 More than 100 25.34 0.87
Q4 2018 9.22 9.22 0.86
Q1 2019 46.39 46.39 0.95
Q2 2019 More than 100 More than 100 1.08
Q3 2019 NEG NEG 1.19

Business Segments (Million)

Compared With The
Period Saudi Electricity Company National Electricity Transmission Company Other Subsidiaries Joint Operations Inter-Company Balances
Q3 2015 13,172.85 1,794.16 3.36 - (1794.16)
Q4 2015 8,955.63 1,866.48 3.51 - (1866.48)
Q1 2016 8,896.92 2,081.14 3.28 507.42 (2594.05)
Q2 2016 13,166.62 1,986.21 38.35 731.67 (2728.71)
Q3 2016 17,136.40 2,107.11 7.36 518.16 (2636.04)
Q4 2016 10,642.80 2,246.18 7.61 749.94 (3006.85)
Q1 2017 8,920.29 2,545.37 7.35 579.63 (3132.34)
Q2 2017 13,302.13 2,541.86 7.08 366.33 (2915.56)
Q3 2017 16,993.46 2,541.86 7.08 822.01 (3378.17)
Q4 2017 11,480.20 3,134.98 7.08 345.88 (3491.59)
Q1 2018 11,291.67 2,895.23 5.77 321.15 (3112.54)
Q2 2018 17,811.57 2,673.67 15.18 227.47 (3026.74)
Q3 2018 21,929.27 2,784.44 (2.30) 430.78 (3212.01)
Q4 2018 14,071.90 2,992.92 16.31 301.44 (4351.52)
Q1 2019 11,382.20 3,241.44 26.98 312.00 (3567.37)
Q2 2019 16,517.76 3,241.42 16.44 285.46 (3540.81)
Q3 2019 20,835.32 3,322.69 9.15 349.52 (3686.14)

Analysts Estimates (Million)

Item Q3 2019 (e) Q3 2019 (a) Change‬
Average 4,387.00 2,679.39 (38.9 %)

Estimates vs Actual (Million)

Item Q3 2019 (e) Q3 2019 (a) Change
SNB Capital 4,387.00 2,679.39 (38.9) %

Current
Market Cap (M Riyal) 67,248.76
Enterprise Value (EV) (M) 179,026.27
Shares Outstanding ((M)) 4,166.59
EPS ( Riyal) (TTM) 0.65
Book Value (BV) ( Riyal) 21.50
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 18.93
P/E (TTM) 24.83
Price/book 0.75
Return on Average Assets (%) (TTM) 0.5
Return on Average Equity (%) (TTM) 3.0

Share Price

16.14
0.00 0.00 %

Saudi Electricity Co. (SAUDI ELECTRICITY)


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