Saudi Electricity Company announces its interim consolidated condensed financial results for the period ending on 30-06-2023 (Six Months)

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	19,718	19,402	1.63	13,379	47.38
Gross Profit (Loss)	6,055	6,545	-7.49	1,760	244.03
Operational Profit (Loss)	5,834	5,861	-0.46	1,724	238.4
Net Profit (Loss) after Zakat and Tax	4,017	5,502	-26.99	480	736.88
Total Comprehensive Income	4,021	5,700	-29.46	432	830.79
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	33,097	32,933	0.5
Gross Profit (Loss)	7,815	9,183	-14.9
Operational Profit (Loss)	7,558	8,070	-6.34
Net Profit (Loss) after Zakat and Tax	4,497	7,020	-35.94
Total Comprehensive Income	4,453	7,797	-42.89
Total Share Holders Equity (after Deducting Minority Equity)	254,788	252,706	0.82
Profit (Loss) per Share	0.17	0.77
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	Net income decreased in the current quarter compared to the same quarter last year is mainly due to:

1) Higher financing costs mainly due to the high-interest rates environment prevailing globally, in addition to the increase in financing costs attributable to additional funding obtained during the current year to finance the company's capital projects.

2) Higher operations & maintenance costs mainly due to business growth, intensive maintenance programs in preparation for summer season and the introduction of new projects into operations, when compared to the same quarter of previous year.

3) Absence of income from discontinued operations in the current quarter compared to the same quarter last year, which reflected the carve-out and sale of the Saudi Power Procurement Company at the end of Q2 2022.

The aforementioned items were partially offset by:

1) Increase in operating revenues despite the fact that electricity sales decreased due to the implementation of the intensive consumption tariff that has been issued as per the Council of Ministers resolution, and

2) Higher other Income, lower provisions for receivables and lower general and administrative expenses.The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is The increase in net income in the current quarter compared to the previous quarter of current year is mainly due to sales seasonality.The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is Net income decreased in the current period compared to the same period last year mainly due to:

1) Higher financing costs mainly due to the prevailing high-interest rates environment globally, in addition to the increase in financing costs attributable to additional funding obtained during the current year to finance the company's capital projects.

2) Higher operations & maintenance costs due to business growth, intensive maintenance programs in preparation for summer season and the introduction of new projects into operations compared to the same period last year.

3) Absence of income from discontinued operations in the current quarter compared to the same period last year, which reflected the carve-out and sale of the Saudi Power Procurement Company at the end of Q2 2022.

The aforementioned items were partially offset by:

2) Higher other Income, lower provisions for receivables and lower general and administrative expenses.Statement of the type of external auditor's report Unmodified conclusionReclassification of Comparison Items Certain comparative figures have been reclassified to conform to the presentation of figures for the current periodsAdditional Information The Company will organize a conference call to discuss financial results of the six months ended 30 June 2023 with investors and financial analysts on Monday, 14-08-2023 at 3:30 PM (KSA Time). Investors wishing to participate in this conference call are requested to contact the Company's Investor Relations Department at IR@se.com.sa

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