RIYADH: Saudi Energy’s net profit rose 4.3 percent year on year to SR12.1 billion ($3.2 billion) in the first nine months of 2026, supported by an expanding regulated asset base and higher project-related revenue.  

Revenue increased 11.5 percent to SR87.2 billion, which the company attributed to higher regulated revenue, including pass-through costs, increased income from project development and management contracts, and customer growth.  

The results come as Saudi Arabia reshapes its electricity sector, targeting a generation mix of approximately 50 percent renewable energy and 50 percent natural gas by 2030, as it gradually phases out liquid fuels used in power generation. 

“With 22 GWh (gigawatt-hour) of battery storage now energized, we achieved our 2026 target, supporting a more flexible grid and greater renewable integration,” CEO Khalid Al-Ghamdi said.

Saudi Energy’s regulated asset base, which determines its permitted revenue, reached SR278.8 billion at the end of September, up 16.6 percent year on year, as completed transmission and distribution projects entered service

Quarterly performance  

Third-quarter net profit edged up 0.4 percent to SR5.4 billion, while revenue increased 12.9 percent to SR35 billion.  

Higher gross profit, lower expected credit-loss provisions and increased earnings from equity-accounted investments supported the quarterly result. These gains were partly offset by lower other income, higher administrative expenses and increased net financing costs.  

For the nine-month period, operating profit rose 4.7 percent to SR16.9 billion, while earnings before interest, taxes, depreciation and amortization increased 6.6 percent to SR34.7 billion.  

Electricity investment  

Adjusted capital expenditure stood at SR59.6 billion, excluding accruals and customer-funded transmission and distribution projects.

Spending focused on transmission expansion, battery storage, generation and distribution infrastructure.  

The company reported that the Kingdom’s peak electricity load reached 79,045 megawatts, 2.5 percent above the 2025 peak.

Grid-connected renewable capacity reached approximately 19.3 GW by the end of September.  

Across the sector, Saudi Power Procurement Co. signed agreements in August for four battery-storage projects involving investment exceeding SR4.35 billion.

Their combined power capacity is 2,000 MW, with four-hour storage duration.  

Three projects were awarded to a consortium including Saudi Energy, Acwa and Al Sharif Contracting and Commercial Development Co., while the fourth went to an ENGIE-led consortium.

The projects are intended to support renewable integration and electricity supply reliability.  

Saudi Energy connected 237,762 new customers during the nine months, bringing its customer base to about 11.7 million. Electricity sales increased 1 percent to 276.9 terawatt-hours.  

The results precede electricity tariff adjustments taking effect on Jan. 1.

Saudi Energy said it did not expect a material financial impact because its regulated asset base and required-revenue framework remained unchanged.