Saudi Electricity Full Year 2023 Earnings: Revenues Beat Expectations, EPS Lags

Saudi Electricity (TADAWUL:5110) Full Year 2023 Results

Key Financial Results

• Revenue: ر.س75.3b (up 4.5% from FY 2022).
• Net income: ر.س2.59b (down 66% from FY 2022).
• Profit margin: 3.4% (down from 11% in FY 2022). The decrease in margin was driven by higher expenses.
• EPS: ر.س0.62 (down from ر.س1.81 in FY 2022).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Saudi Electricity Revenues Beat Expectations, EPS Falls Short

Revenue exceeded analyst estimates by 2.8%. Earnings per share (EPS) missed analyst estimates by 41%.

The primary driver behind last 12 months revenue was the Saudi Electricity Company segment contributing a total revenue of ر.س69.6b (92% of total revenue). Notably, cost of sales worth ر.س59.8b amounted to 79% of total revenue thereby underscoring the impact on earnings. The most substantial expense, totaling ر.س11.2b were related to Non-Operating costs. This indicates that a significant portion of the company's costs is related to non-core activities. Explore how 5110's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 4.2% p.a. on average during the next 3 years, compared to a 3.5% growth forecast for the Electric Utilities industry in Asia.

Performance of the market in Saudi Arabia.

The company's share price is broadly unchanged from a week ago.

Risk Analysis

Be aware that Saudi Electricity is showing 3 warning signs in our investment analysis and 1 of those makes us a bit uncomfortable...

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.