Saudi Energy Co Kept at Neutral as Riyad Capital Notes Q2 Results

04:37 AM EDT, 08/13/2026 (MT Newswires) -- Riyad Capital maintained its investment view on Saudi Energy Co (SASE:5110) following the release of the electricity supplier's second-quarter financial statements. "Our long-term constructive view on Saudi Energy remains on growing infrastructure to support the economic transformation plans. Growth plans do imply rising financing needs and finance costs. We maintain our target and Neutral rating. There has been little stock price movement since our last report. Watch for 4% dividend yield," analysts wrote in a Wednesday first look note. The Saudi-listed company logged a 7% yearly decline in net profit to 4.89 billion riyals, against Riyad Capital's estimate of 6.07 billion riyals. Revenue rose 11% in the three-month period, which the research firm said was "close" to its 30.49 billion-riyal forecast. "This growth was led by higher required revenues on RAB growth as well as energy costs passthrough coupled with higher projects revenues as well as a rise (+47k) in the customer base, which reached 11.6 mln customers. The transmission and distribution RAB witnessed a +14% Y/Y growth to SAR 272 bln. Energy sold was almost flat at 161 TWh as lower industrial demand offset demand growth across other segments," analysts added. The stock has a price target of 17 Saudi riyals at Riyad Capital.