The Power and Water Utility Company for Jubail and Yanbu announces its Interim Financial results for the Period Ending on 30-06-2026 ( Six Months )

Marafiq reported a net loss of SAR 46.45 million for the second quarter of 2026, a 142% decrease compared to a net profit of SAR 109.6 million in Q2 2025, resulting in an earnings per share (EPS) of SAR (0.19).
Total revenue increased by 22.2% year-over-year to SAR 1.71 billion, primarily driven by a SAR 434 million non-recurring adjustment related to the High Intensity Electricity Consumption Tariff (HIECT) that had reduced the prior year's revenue, though this was partially offset by lower demand in the Industrial Water segment in Jubail.
The shift to a net loss was largely influenced by a 19% increase in fuel costs used in production (SAR 40 million impact) and a SAR 15 million rise in maintenance costs due to advanced scheduling, alongside a temporary decline in demand from industrial water customers.
Free cash flow grew by 32% year-over-year to reach SAR 672 million, supported by strong operating cash flows despite a 25% decline in EBITDA to SAR 543 million and ongoing capital expenditures for projects such as the Yanbu natural gas conversion.

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	1,714.14	1,402.66	22.206	1,814.57	-5.534
Gross Profit (Loss)	201.6	-151.73	-	339.8	-40.67
Operational Profit (Loss)	141.46	310.48	-54.438	316.36	-55.285
Net Profit (Loss) Attributable to Shareholders of the Issuer	-46.45	109.6	-	127.56	-
Total Comprehensive Income Attributable to Shareholders of the Issuer	-39.58	105.81	-	125.39	-
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	3,528.71	3,106.6	13.587
Gross Profit (Loss)	541.4	166.88	224.424
Operational Profit (Loss)	457.81	639.08	-28.364
Net Profit (Loss) Attributable to Shareholders of the Issuer	81.11	227.54	-64.353
Total Comprehensive Income Attributable to Shareholders of the Issuer	85.81	199.25	-56.933
Total Shareholders Equity (after Deducting Minority Equity)	5,245.59	5,423.66	-3.283
Profit (Loss) per Share	0.32	0.91
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	-	-
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is	The increase in revenue is mainly due to: • A non-recurring adjustment related to the High Intensity Electricity Consumption Tariff (HIECT), which reduced the revenue in the same quarter of last year with an amount of SAR 434 million. (for more on non-recurring adjustment see the additional information) The increase has been offset by: • Lower revenue from Tawreed (a wholly owned subsidiary) amounting to SAR 105 million and lower revenue from the water segment amounting to SAR 23 million, due to lower demand levels from industrial customers in Jubail Industrial City.
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	The net loss is mainly due to: • An increase in fuel cost used in production processes amounting to SAR 40 million. • An increase in transmission and wheeling costs amounting to SAR 15 million. • A decrease in other operating income, net, amounting to SAR 15 million. • A non-recurring adjustment of SAR 62 million was recognized in the same quarter of the previous year as a result of applying the High Intensity Electricity Consumption Tariff. (for more on non-recurring adjustment see the additional information)
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is	The decrease in revenue was mainly due to lower revenue from the water segment as a result of lower demand from industrial customers in Jubail Industrial City, partially offset by higher revenue from the power and gas segments.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is	The net loss is mainly due to: • A decrease in water segment profitability due to lower demand from industrial customers in Jubail Industrial City. • A decrease in other operating income, net, amounting to SAR 31 million (non-recurring), mainly due to the receipt of success fees related to Amiral Industrial Wastewater Treatment and Reuse Project in Jubail in the first quarter.
The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is	The increase in revenue is mainly due to: • A non-recurring adjustment related to the High Intensity Electricity Consumption Tariff (HIECT), which reduced the revenue in the same period of last year with an amount of SAR 476 million. (for more on non-recurring adjustment see the additional information) • Higher revenue from water segment amounting to SAR 85 million. The increase has been offset by: • Lower revenue from Tawreed (a wholly owned subsidiary) amounting to SAR 137 million, due to lower demand from industrial customers in Jubail Industrial City.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is	The decrease in net profit is mainly due to: • An increase in fuel cost used in production processes amounting to SAR 137 million. • A decrease in other operating income, net, amounting to SAR 36 million. • An increase in repair and maintenance cost amounting to SAR 32 million. • An increase in transmission and wheeling costs amounting to SAR 22 million. The decrease has been offset by: • A decrease in finance costs amounting to SAR 49 million.
Statement of the type of external auditor's report	Unmodified conclusion
Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion)	N/A.
Reclassification of Comparison Items	No
Additional Information	Additional Information Related to High Intensity Electricity Consumption Tariff On 27 April 2025, the Company received a notification from Saudi Electricity Regulatory Authority (SERA) for amendment of electricity consumption tariff for establishments that are not eligible for HIECT in the Industrial, Commercial and Agricultural sectors with an increase of 2 halala/Kwh. The amendment come into effect on 28 May 2025, the Company applied HIECT, resulting in the following adjustments: • Non-recurring adjustment of revenue in accordance of IFRS 15: Revenue from power segment has decreased by SR 476 million related to previous periods, due to the issuance of credit notes for qualified customers as a result from the reduction of tariff for the periods from January 1st, 2023, to December 31st, 2024. • Non-recurring reversal of the provision for impairment loss on trade receivables: Company reversed a related impairment provision of SR 496 million (inclusive of VAT) pertaining specifically to the receivables of customers eligible for the HIECT. • The net impact on Consolidated Statement of Income: the above adjustments had a positive impact on Consolidated Statement of Income with an amount of SR 21 million for the six months. (Three months impact is SR 62 million)
Attached Documents	Attached Documents