Saudi Electricity Co. (SEC) said Wednesday its first quarter net loss narrowed by 25 percent, thanks to increased revenue. The utility company recorded a net loss of SR583 million ($155 million) compared with a loss of SR774 million in the same period of last year, it said in a statement. The company attributed the improved performance to increased revenue from higher energy sales. The firm's profitability generally improves in the second and third quarters when power consumption surges due to heavy reliance on air conditioners during the summer. Power demand in the Kingdom rises to 8 percent a year, fuelled by high population growth. SEC's installed capacity of 50,000 megawatts needs to rise to at least 80,000 megawatts by 2020, officials have previously said. Over the longer term, the company is planning a major restructuring as it breaks its business up into a holding company owning six separate units to encourage competition. SEC in March launched a $1.75 billion two-part Islamic bond amid perceived strong market demand to support its substantial investment needs.
