Saudi Marafiq posts 38% y-o-y drop in bottomline for 2023

Marafiq still in the red: Saudi Public Investment Fund-backed Power and Water Utility Company for Jubail and Yanbu (Marafiq) saw its net income plunge 38% y-o-y to SAR 526 mn in 2023, while revenues inched down 1.8% y-o-y to SAR 6.4 bn over the same period, it said in a disclosure to Tadawul.

What’s behind the fall? The firm attributed the sharp decline in net profits to the 74% increase of its financing costs and a 1.78% y-o-y fall in its revenues, which it explains comes as a result of decreased demand for power from some major customers in Yanbu Industrial City, and despite the increase in revenues from its water and gas sectors.

ICYMI- Marafiq recorded a 39.2%y-o-yfall in net income in 3Q to SAR 188 mn, also on the back of an increase in financing costs and a decrease in the company's operating revenues.

About Marafiq: Marafiq is the power and water utility company for the Saudi cities of Jubail and Yanbu. It has core businesses in seawater cooling, desalination, and waste treatment and management. Saudi Arabia’s Public Investment Fund (PIF) postponed in October the potential sale of its remaining 17.5% stake in the utility firm on the back of weak demand from investors. Marafiq’s IPO was 6.32x oversubscribed in 2022, closing with almost SAR 6.37 bn (USD 1.7 bn) worth of total orders.