Saudi Energy Co. · TADAWUL:5110
Saudi Energy — Saudi Electricity Company — H1 2020 Earnings Presentation
21 slides from Saudi Energy's earnings presentation, Aug 11, 2020
Slide 1: H1 2020 Earnings Conference Call
H1 2020 Earnings Conference Call Results Presentation August 11th , 2020 C1 - Public Natixis
Slide 2: Disclaimer
Disclaimer This document has been prepared by Saudi Electricity Company (“SEC”) solely for presentation purposes. The information contained in this document has not been independently verified and no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on
Slide 3: SEC Overview, Business Overview, Financial Performance
1. SEC Overview 2. Business Overview 3. Financial Performance
Slide 4: SEC is the national provider of electricity in the Kingdom
SEC is the national provider of electricity in the Kingdom Overview of SEC SEC’s key strengths 2000 Date of establishment Founded pursuant to the Royal Decree No. M/16 dated 13 Dec 1999 81.1% indirectly owned by the Kingdom of Saudi Arabia (74.3% owned by Shareholding the Public Investment Fun
Slide 5: SEC the leading producer of electricity with monopoly on transmission and distribution
SEC the leading producer of electricity with monopoly on transmission and distribution services within the Kingdom SEC is the national provider of electricity in Saudi Arabia(1) New growth businesses Total available (2) Total electricity sales(1) capacity: 77.2 GW volumes: 279.7 TWh Distribution Daw
Slide 6: Historical and Ongoing Government Support
Historical and Ongoing Government Support Strong relationship with government underpinned by SEC’s critical role in generating and providing electricity across the Kingdom Strong links to government Expressed and demonstrable government support Majority government ownership and strong Board Dividend
Slide 7: H1 2020 Key developments and highlights
H1 2020 Key developments and highlights 1 The balancing account activated 4 Continued growth in subscribers base ‒ in Jan 2020, the government approved and activated the balancing account, ‒ 4% YoY growth in subscribers’ base up to 9.93 million partially offsets which a regulatory reform aims to ach
Slide 8: Business Overview
1. SEC Overview 2. Business Overview 3. Financial Performance
Slide 9: Generation overview
Generation overview SEC is the largest electricity provider in the Kingdom As of H1 2020 end, SEC had generation capacity of 53.2 GW and owned and SEC’s contribution to the Kingdom’s power generation operated 40 power plants throughout the Kingdom GW % (lhs) and GW (rhs) Consumption rationalizat
Slide 10: Transmission overview
Transmission overview SEC has a regulated monopoly position for the transmission of electric power throughout the Kingdom and its transmission network currently connects almost 99% of the Kingdom SEC’s transmission network length development In H1 2020, SEC added 4,054 c.km of new transmission lin
Slide 11: Distribution overview
Distribution overview SEC is focused on enhancing the delivery of power supply to meet market needs given the growing population and the increasing industrialization within the Kingdom SEC’s distribution business is responsible for medium and low voltage power Population coverage via SEC’s distrib
Slide 12: Fibre optic telecom
Fibre optic telecom Dawiyat’s NBI progress Telecom Services for Mega-projects and Data Centers Roll-out across 30 cities so far Deals and MoUs signed with MODON, SPARK project, MOH projects respectively 24,000 km of fibre rolled out Tier – 3 Certified DC Global Data Hub (GDH) data center in KAUS
Slide 13: Covid-19 Initiatives
Covid-19 Initiatives Serving our customers Protecting our people Helping our community 30% Discount on Electricity Bills for Maintain a safe work environment for Denotations to KSA health endowment Commercial, Industrial and Agricultural essential staff performing critical field fund Customers
Slide 14: Financial Performance
Agenda 1. SEC Overview 2. Business Overview 3. Financial Performance C1 - Public Natixis 13
Slide 15: Revenue
Revenue (3) SAR million 26.4% 1.5% 0.5% 65,040 0.9% 50,685 64,064 65,040 16,520 16,668 (1.3)% (35.6%) 55.1% 32.2% 3% 523 1,862 303 28,066 27,916 59,623 58,865 175 20 45,466 333 433 144 2,591 1,096 1,608 1,006 1,834 1,131 2 0 1 7 (1) 2 0 1 8 (2) 2 0 1 9 (3) Q 2 2 0 1 9 Q 2 2 0 2 0 Meter reading, main
Slide 16: Costs of Sales
Costs of Sales SAR million 6..5% 1.3% 58,144 58,916 8.4% 11.7% 13.7% 7.9% 5.5% 0.7% 32.2% 14,704 14,494 28,506 43,995 65 165 15,275 16,434 18,363 503 26,731 501 9,027 7,670 7,576 14,700 15,930 541 8,021 8,254 7,805 11,672 11,082 10,678 2017 2018 2019 Q2 2019 Q2 2020 Government Fees Depreciation Fuel
Slide 17: Net Profit
Net Profit SAR million 6,908 (74.6)% (21)% 1,757 789 1,388 (869) (700) (3,310) (373)% 2017 (1) 2018 (2) 2019 (3) Q2 2019 Q2 2020 H1 2019 H1 2020 Reported net losses in Q2 2020 and widened losses in H1 2020 compared to corresponding prior year periods are mainly attributable one-off fuel dues settl
Slide 18: Capital Expenditure
Capital Expenditure SAR million 43,760 3,154 (31.9)% 10,849 29,781 (22.3)% 9,927 2,303 23,141 10,446 7,895 2,740 20,750 6,797 5.2% 12,432 9,898 918 1,538 1,364 1,413 4,820 9,007 7,151 3,717 1,306 3,582 657 2017 (1) 2018 (2) 2019 (3) H1 2019 H1 2020 Generation Transmission Distribution General Projec
Slide 19: Balance Sheet
Balance Sheet SAR million Assets split Liabilities and Equity split 464,556 479,830 487,967 464,556 479,830 487,917 +3,3 +3.3 1,539 2,429 1,918 5,003 5,016 73,570 68,916 4,148 73,678 37,884 35,345 35,176 50,151 55,469 44,040 17,050 22,425 28,869 422,969 424,148 418,102 183,491 183,858 184,402 4,745
Slide 20: Key investment highlights
Key investment highlights Largest utility company in the MENA region(1) as the leading and incumbent generator and monopoly on transmission and 1 distribution in the Kingdom of Saudi Arabia Strong relationship with the Government of Saudi Arabia as a key stakeholder (majority owner(2), regulator, ke
Slide 21: Q & A
Q&A SEC’s investor relations contacts: Email: [email protected] Telephone: +966 11 80 77161 or +966 11 80 77978 Website: www.se.com.sa C1 - Public Natixis
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