DUBAI: Saudi Electricity Co (SEC), the Gulf’s largest utility firm, reported a 46.1 percent drop in net profit for the second quarter on Tuesday, as it failed to repeat a one-time gain it recorded in the same period last year.

It made 1.97 billion riyals ($525.3 million) during the three months to June 30, compared to a profit of 3.66 billion riyals during the corresponding period of 2014, it said in a bourse statement.

HSBC and NCB Capital respectively forecast that SEC would make a net profit in the quarter of 2.64 billion riyals and 1.26 billion riyals.

The company’s earnings in the same period of last year were boosted as a result of a 2.63 billion riyal gain after it was paid debt owed by high-profile customers which had previously been counted as impairments.

Saudi companies issue brief earnings statements early in the reporting period before publishing more detailed results later.

The company is in talks with local and international banks to raise a multi-billion-dollar loan, according to two sources aware of the matter, Reuters reported earlier on Tuesday.—Reuters