Saudi Energy reported strong financial results during the first half of 2026 as higher customer numbers and continued infrastructure expansion supported business growth. Saudi Energy also benefited from increased income linked to electricity network projects, helping the company improve both revenue and profitability during the period.
The utility company generated more than SAR52 billion in revenue during the first six months of the year. That represented an 11% increase compared with the same period last year. At the same time, net profit climbed nearly 8% to SAR6.7 billion, reflecting continued demand for electricity services across the Kingdom.
The company maintained steady growth despite challenges during the second quarter. Quarterly revenue increased 11% from the previous year. However, second-quarter net profit declined 7% because of higher financing costs and lower operating earnings.
Even so, the company’s overall financial performance remained positive. Revenue growth continued supporting long-term expansion plans as electricity demand increased across residential, commercial, and industrial sectors.
Saudi Energy also increased investment in its infrastructure network. Capital expenditure reached SAR39 billion during the first half of 2026. That marked a 6% increase compared with the same period last year.
The company directed significant investment toward expanding its electricity transmission network. It also invested in battery energy storage systems, electricity generation facilities, and improvements to distribution infrastructure. These projects aim to strengthen network reliability while supporting future electricity demand.
The expansion strategy also increased the company’s regulated asset base. Since Saudi Energy operates under a regulated business model, additional infrastructure investments help generate higher long-term returns. As the network grows, revenue opportunities also increase through regulated electricity services.
Network expansion continued across several key areas during the first half of the year. The electricity distribution network expanded by 5% compared with last year. Meanwhile, transmission infrastructure increased by 4%, supporting greater electricity capacity throughout the Kingdom.
The company also expanded its fiber-optic network. Fiber infrastructure grew by 7%, supporting digital operations and communication systems across the electricity network. Continued investment in advanced technology remains an important part of the company’s modernization strategy.
Customer growth also contributed significantly to stronger financial results. Saudi Energy served approximately 11.6 million customers by the end of June. During the second quarter alone, the company connected more than 47,000 new customers to its network.
The growing customer base reflects continued population growth, urban development, and expanding economic activity across Saudi Arabia. New residential communities, commercial developments, and industrial projects continue increasing electricity demand throughout the country.
The company remains one of the Kingdom’s largest infrastructure providers. Its operations play an important role in supporting national development projects and long-term economic diversification plans.
Saudi Arabia’s Public Investment Fund remains the company’s largest shareholder with a 74% ownership stake. The sovereign wealth fund continues supporting strategic investments that strengthen critical infrastructure and support future growth.
Despite the strong first-half results, investors reacted cautiously during Tuesday’s trading session. Saudi Energy shares traded about 0.7% lower during morning trading. However, the stock has still gained more than 25% since the beginning of 2026, reflecting investor confidence in the company’s long-term outlook.
Saudi Energy continues expanding its electricity infrastructure while increasing customer connections across the Kingdom. Ongoing investment in transmission, distribution, and energy storage projects positions the company for future growth. As Saudi Arabia continues developing new cities and industries, electricity demand is expected to remain strong, supporting additional revenue opportunities in the years ahead.
