Listed energy companies are heading into the year’s first earnings season with a split screen, according to a Riyad Capital research note seen by EnterpriseAM. Steady demand is keeping the grid players in the green, while drillers and upstream services are feeling the drag from softer activity and idle rigs.

Saudi Electricity Company (SEC) is set to post the highest gains in 1Q, benefiting from higher electricity consumption and stable margins, even as 1Q results tend to reflect seasonal winter lows in demand. SEC is projected to deliver a 34% y-o-y increase in net income to SAR 1.2 bn, with revenues climbing 10% to SAR 17.4 bn. Marafiq is also holding steady with its bottomline expected to grow 4% to SAR 44 mn, while its top line is expected to log SAR 1.7 bn, reflecting a 6% y-o-y uptick.

Meanwhile, Arabian Drilling is looking at a rough quarter, with its net income projected to drop 39% to SAR 89 mn. The firm’s revenues are expected to fall 10% y-o-y to SAR 867 mn, with rig suspensions and lower oil prices cited by Riyad Capital as the primary drag.

MEANWHILE- Ades Holding’s net income is set to remain unchanged at SAR 195 mn, while revenues are projected to rise 6% y-o-y to SAR 1.63 bn.

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