The industrial cities in which Marafiq operates enjoy strong support from the National Industrial Development and Logistics Program, which is a key pillar of Saudi Vision 2030.
The Industrial cities are set to grow extensively with investments of SAR 100 billion planned by the Royal Commission of Jubail and Yanbu (RC) over the next two years. As a key utility’s provider in the industrial cities under Royal Commission, Marafiq is at the center of this growth.
Jubail is the world's largest industrial city. It is the source of 11% of the Kingdom's non-oil GDP and c.7% of global petrochemical production.
Yanbu is the largest refinery hub in the Kingdom, with one-third of the total refinery capacity. Together, Jubail and Yanbu provide 97% of all refined product for export from Saudi Arabia’s ports.
Ras Al Khair is a new industrial city dedicated to being a future mining hub in the Kingdom, with a strong strategic link to Jubail's petrochemical industries.
Jazan is the Kingdom's center for heavy industries, with several large-scale projects being developed, including the world's largest titanium smelter.
Marafiq's customer base comprises large-scale, highly creditworthy industrial customers, which accounted for 86% of its revenues in FY2021.
This strong customer base ensures sufficient and stable demand for utility services and low counterparty credit risk.
Marafiq has developed a strong and reliable power and water asset base driven by its strong asset management capabilities. As a result, the Company had over 90% availability of its power, water and gas services.
Marafiq also has a young asset fleet – its power assets have an average remaining technical life of 25 years, with water assets having 15-20 years of life left.
Marafiq’s largest shareholders are its four founding shareholders - the Public Investment Fund (PIF), the Royal Commission for Jubail and Yanbu (RC), Saudi Aramco Power Company (SAPCO) (a wholly owned subsidiary of the Saudi Arabian Oil Company (Saudi Aramco), and the Saudi Basic Industries Corporation (SABIC) – each of which currently holds 17.5% of Marafiq’s share capital.
The presence of the Royal Commission and PIF as its shareholders affirms the strategic importance of Marafiq to the Kingdom.
Meanwhile, as well as being supportive shareholders, Aramco and SABIC provide broader support in areas such as governance and benchmarking.
Marafiq has a seasoned and entrepreneurial management team with strong operational and technical experience.
Marafiq’s strong operational performance underpins its stable financial results.
In 2022, the company's revenues reached 6,505 million Saudi riyals, showing a 5.1% increase compared to the previous year. This growth can be attributed to the higher quantities of utility services sold to industrial customers across all of the company's main sectors.
During the year 2022, Marafiq achieved net profits after Zakat and Income Tax of 845.65 million Saudi riyals. This represents a 27.2% increase compared to the net profits of 664.65 million Saudi riyals in the previous year.
As Marafiq’s operations continue to expand in the industrial cities affiliated with the Royal Commission and throughout the Kingdom, it is expected to achieve steady growth in revenues and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA).
Marafiq enjoys stable cash flow patterns due to a high free cash flow conversion rate and operates within a regulated environment with well-defined guidelines. The company is projected to make substantial reductions in its debt over the next few years.
Marafiq’s solid customer base consists of industrial clients, some of whom have long-term contracts with Marafiq. This positively impacts the company's financial performance, and the stability of revenues, combined with the regulated tariff framework, helps minimize cash flow fluctuations.
Marafiq's strong financial indicators have resulted in an attractive return on equity of approximately 10.2% for its shareholders in the fiscal year 2022.
Marafiq will continue to leverage its existing strong asset base to accelerate its growth in existing areas of operations in Jubail, Yanbu, Ras Al Khair, Jazan and Jeddah.
The Company will capitalize on opportunities associated with the Saudi Vision 2030 privatization drive and the continued industrial growth of the Kingdom.
Marafiq also plans to enhance its asset utilization rates to increase profitability across all business pillars.
Marafiq is committed to focusing on environmental and social issues that will enhance its business model and provide value to all stakeholders.
At an operational level, the Company aims to reduce water loss and emissions intensity, as well as optimize its energy usage.
In line with the Kingdom's ambitions to lower carbon emissions and replace 1 million barrels per day of liquid fuels with renewables and Gas by 2030, Marafiq has set the target to displace all liquid fuel with gas at Yanbu power generation plants.
As part of Marafiq's reuse and sustainability objectives, over 175,000 m³/day of treated water is reused for the irrigation networks across Yanbu and Jubail.
Marafiq’s sustainability initiatives are expected to reduce its greenhouse gas emissions intensity by c.25% and result in a c.15% reduction in energy intensity by 2030.
LOCATION
Jubail (Headquarters) P.O.Box 11133 Jubail Industrial City, 31961, Kingdom of Saudi Arabia
Yanbu P.O.Box 30144 Yanbu Industrial City, Kingdom of Saudi Arabia
