Chairman’s Message
We are committed to integration and cooperation within the energy system. We always strive to provide highly efficient electrical services and apply the highest standards of governance, transparency, and disclosure to achieve the best results for our shareholders, customers, and employees
The Saudi Electricity Company (SEC) has solidified its leading position in the field of electrical energy by adopting the best technological practices and international standards to guarantee a high-level, reliable and efficient electrical service. The remarkable achievements and notable expansion in investments and projects across all levels during the past year of 2023 have been realized, by the grace of Allah, due to the unlimited support provided to the energy sector, by the government of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and Crown Prince, Chairman of the Council of Ministers, His Royal Highness Prince Mohammed bin Salman. This success had the greatest impact on the company’s growth and outstanding performance, and made the company seek to develop and enhance operations in all sectors of the company and its subsidiaries, harnessing all resources to achieve the company’s strategic objectives.
H.E. Dr. Khaled bin Saleh Al Sultan
Chairman of the Board
We affirm our full confidence that our strategy, based on integration and collaboration with the energy sector, and our unwavering commitment to providing highly efficient electrical services, coupled with the application of the highest governance standards across all our operations, and full adherence to the principles of transparency and disclosure, will enable us to achieve the best results for our esteemed shareholders, customers, and employees. In line with the aspirations of the wise leadership, headed by the Custodian of the Two Holy Mosques King Salman bin Abdulaziz and His Royal Highness the Crown Prince, Chairman of the Council of Ministers, Mohammed bin Salman, and with the follow-up and support of His Royal Highness the Minister of Energy, Prince Abdulaziz bin Salman, may Allah protect them, the company has worked on improving its operations and expanding the scope of services provided to customers by implementing feasible and sustainable solutions, high-quality projects that support security of energy supply, and enhancing the security and reliability of the electricity grid. This is done within a comprehensive approach and a strategy aligned with the ambitions and aspirations of the energy sector, foremost of which is the Ministry of Energy, which has harnessed all possible means for the success of the energy sector and achieving its strategic objectives.
Based on this, the Saudi Electricity Company has developed comprehensive and well-considered plans for effective solutions, measures, and procedures to address all challenges. These are supported by a clear strategy aimed at leading the sector in the Kingdom of Saudi Arabia by creating new job opportunities, stimulating foreign direct investment, enhancing economic diversification, integrating advanced technologies, and enabling digital transformation.
On this basis, the Saudi Electricity Company designed a comprehensive investment plan extending until 2030, with a significant financial commitment of billions of Riyals. This comprehensive strategy revolves around the company’s core activities: generation, transmission, and distribution. The strategic allocation of resources is expected to lead to a significant increase in the size of the network, facilitating the accommodation of a larger number of customers, while ensuring the continued reliability of the system.
Through this annual report, I am pleased to summarize the key milestones achieved by Saudi Electricity Company in 2023, and highlight our development plans and future projects, which, by the grace of Allah, will contribute to achieving our strategic objectives.
During the fiscal year 2023, the company maintained a strong financial position. With the total value of the company’s assets reaching approximately 500.8 billion SAR, representing an annual growth rate of 4.4%. Equity amounted to 256.3 billion SAR at the end of the fiscal year 2023. The financial performance indicators of the company and its strong financial position were reflected in its credit rating by global rating agencies, tied to the Kingdom’s sovereign rating. The company maintained a strong investment-grade credit rating, one of the highest for companies in the Kingdom. The credit rating was (A) with a stable outlook from both Standard & Poor’s and Fitch, and (A1) with a positive outlook from Moody’s.
In terms of investments, the Saudi Electricity Company continued its expansion in diverse investments to enhance its services for customers and keep pace with the growing demand for electrical energy. The company acquired a 25% stake in the “Electric Vehicles Infrastructure Company,” owned entirely by the Public Investment Fund, at a value of SAR 254 million.
In line with the Kingdom’s ambition to achieve net zero by 2060 through adopting a circular carbon economy framework and in alignment with the directives of the Ministry of Energy, the Saudi Electricity Company announced its ambition to achieve net zero by 2050. It also announced the establishment of a regional sustainability center, believing in its role in addressing the impact of climate change through integration with various relevant entities to achieve the declared targets.
The Kingdom achieved its highest historical peak for electrical loads, reaching 70,663 megawatts, an 8.2% increase compared to 2022. This was attributed to the strategic projects, network enhancements following the highest quality and reliability standards to meet the increasing demand for electrical energy in the Kingdom.
In our commitment to developing national human resources, the localization rate of jobs in the company increased to 94%, efficiently managing the electrical network across all regions of the Kingdom.
Emphasizing the SEC’s dedication to enhancing the customer experience and building corporate identity, the Company launched the new version of its customer service application – AlKahraba APP, offering various smart services and solutions to improve service performance for customers. These efforts contributed to increasing customer satisfaction to 81%, compared to 75% in the previous year, 2022.
In conclusion, I extend sincere thanks and gratitude, on my behalf and on behalf of my fellow board members, the executive management, and all employees of the company, to the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, and his Crown Prince, His Royal Highness Prince Mohammed bin Salman for their unlimited support our esteemed government extended to the company, which contributed to realizing these achievements. I also express my thanks to His Royal Highness Prince Abdulaziz bin Salman, the Minister of Energy, and the president of the ministerial committee for restructuring the electricity sector, and their excellency the committee members for their significant support and follow up of the company’s programs, and realizing its interest.
Finally, I pray to Almighty Allah to guide us all to achieve more development in the field of Electricity sector to support the Kingdom’s development journey under the ambitious vision of 2030.
May Allah preserve our generous country, its glory, security, and safety under the wise leadership of our esteemed government.