Strong Results Drive Saudi Energy to Profit Surge and Dividend; Riyadh Development Sees Operational Improvement with Stable Net Income

Riyadh | EcoPulse24

The Saudi market witnessed two prominent financial results announcements for fiscal year 2025, reflecting notable operational improvements in the energy and real estate development sectors. Saudi Energy Company achieved a substantial profit surge, while Riyadh Development Company saw stable net profit despite robust operational growth.

Riyadh Development reported sales of SAR 384.2 million, a 19.5% increase from SAR 321.5 million the previous year, driven by higher core business revenues, increased activity in markets and affiliated centers, and the sale of non-strategic land worth SAR 97 million. Gross profit rose to SAR 265.6 million, up 32.8%, and operating profit jumped 90.4% to SAR 190.8 million. Net profit attributable to shareholders was SAR 296.1 million, nearly unchanged year-on-year; last year's results included SAR 123 million in non-recurring income from the sale of an associate's land, indicating underlying operational improvement in 2025. Equity rose 62.2% to SAR 4,127 million, while earnings per share stood at SAR 1.3, down from SAR 1.67. The auditor's report was unqualified. The share closed at SAR 17.74, up 2.54%, with trading nearing SAR 2 million.

In contrast, Saudi Energy Company posted broad-based operational growth. Revenue reached SAR 102,218 million, up 15.28%, driven by recognized required revenue from the expanding regulated asset base, higher energy demand, and a growing subscriber base. Gross profit was SAR 20,786 million (up 18.87%), and operating profit soared 62.12% to SAR 19,081 million. Net profit attributable to shareholders nearly doubled to SAR 12,975 million. Excluding non-recurring items in 2024, net profit rose 7%. EBITDA reached SAR 41,546 million, up 10%. Earnings per share recovered to SAR 0.96 from a loss of SAR 0.46. The board recommended a 2025 cash dividend of SAR 2.916 billion (SAR 0.70 per share, 7% of par value). The stock closed at SAR 13.64, up 0.96%, with trades exceeding SAR 16 million.

EcoPulse24 Analysis:
The results underscore structural contrasts between the sectors. Saudi Energy is benefiting from asset base expansion and rising demand, ensuring cash flow visibility and supporting its dividend policy. Improved operational profitability signals entry into a phase of sustainable profitability after last year’s non-recurring impacts. Riyadh Development, meanwhile, has achieved meaningful operational gains through efficiency and cost reduction, but stable net profit suggests prior reliance on exceptional gains. The company’s stronger equity position enhances financial resilience, yet its future trajectory hinges on converting operational improvements into sustainable net growth.