Electrical Industries Co. Subsidiary Inks $41 Million Agreement To Supply Transformers To Aramco By CIOTechOutlook Team

Electrical Industries Co. Subsidiary Inks $41 Million Agreement To Supply Transformers To Aramco

CIOTechOutlook Team | Monday, 10 July 2023, 03:16 IST

Saudi Arabia's Electrical Industries Co. has secured an SR153 million ($40.78 million) contract to deliver transformers to the oil giant Saudi Aramco, the business announced in a bourse filing. This contract is one of the largest power equipment deals. The maker of electrical equipment claimed that Saudi Power Transformers Co., a subsidiary, helped it win the 20-month contract, and that the agreement will improve its financial situation over the next two years.

“The contract is expected to have a positive impact on the financial results of the company for the year 2025,” the statement added.

In order to address the rising demand for electrical equipment in the Kingdom, two major electrical manufacturers, Wahah Electric Supply Co. of Saudi Arabia and the Saudi Transformers Co., merged to form EIC. The Saudi Power Transformers Co., a subsidiary of EIC, also received a transformers provision contract in April valued SR79 million, the bourse announced at the time.

The Kuwaiti Ministry of Electricity, Water, and Renewable Energy awarded the project. This follows another agreement its subsidiary made in May to deliver electrical transformers to Al-Babtain Contracting Co. for SR66.6 million.

In contrast to the SR48.84 million achieved in 2021, EIC reported a 92.8 percent increase in net earnings to SR94.17 million last year. The company's revenues increased by 38.3 percent a year, from SR770.7 million in 2021 to SR1.06 billion in 2022.

The state-owned Saudi Electricity Co. plans to increase spending in 2023 as part of ongoing efforts by businesses in the Kingdom to strengthen the local electricity market. The Public Investment Fund-owned company stated in its financial presentation from March that it planned to set aside between SR30 billion and SR35 billion for its capital expenditure in 2023.