RIYADH: In one of the major power equipment deals, Saudi Arabia’s Electrical Industries Co. has received a SR153 million ($40.78 million) contract to supply transformers to the oil giant Saudi Aramco, the company said in a bourse filing. The electrical equipment manufacturer said it won the 20-month contract through its subsidiary Saudi Power Transformers Co., adding that the deal will positively impact its fiscal position in two years, EIC said in a bourse statement released on Thursday. “The contract is expected to have a positive impact on the financial results of the company for the year 2025,” the statement added. EIC was established with the merging of two leading electrical manufacturers — Wahah Electric Supply Co. of Saudi Arabia and the Saudi Transformers Co. — to meet the growing demand for electrical equipment in the Kingdom. In April, EIC’s subsidiary Saudi Power Transformers Co. was also awarded a transformers provision contract worth SR79 million, the bourse revealed at the time. The project was awarded by the Ministry of Electricity and Water and Renewable Energy in Kuwait. This comes after another deal its subsidiary signed in May with Al-Babtain Contracting Co. for SR66.6 million to supply electrical transformers. Last year, EIC reported a 92.8 percent increase in its net profits to SR94.17 million compared to SR48.84 million recorded in 2021. As for the company’s revenues, they rose from SR770.7 million in 2021 to SR1.06 billion in 2022, showing a 38.3 percent increase annually. Companies in the Kingdom are making continued efforts to develop electricity locally, with the state-owned Saudi Electricity Co. planning to increase expenditure in 2023. In its financial presentation made in March, the Public Investment Fund-owned firm said that it intended to allocate between SR30 billion and SR35 billion for its 2023 capital expenditure. This is at least 10 percent higher than its 2022 capex which stood at SR27.4 billion. Even though SEC did not provide a clear breakdown of the allocated amount, it is projected that expenditure in transmission and distribution infrastructure will be a priority considering that they dominated the firm’s capital expenditure for the past three years.