Saudi Electricity Company (SEC) [5110.SE] posted KPIs for 2Q16, with net profit coming in at SAR1,426mn, a c28% decline Y-o-Y and vs. losses of 1,374mn in 1Q16. The company attributed the weaker results Y-o-Y to an increase in the company’s cost of sales on the hike in energy input prices, along with higher depreciation expense. The inflated cost of sales led to a similar drop in gross profit (26% Y-o-Y) reaching SAR1,563mn, while operating profit fell 32% Y-o-Y to SAR1,274mn. The company's 2Q16 results saw a rebound to profits, following losses in 1Q16, which Saudi Electricity attributed to the seasonality of sales. (Tadawul)