The Jubail and Yanbu Power and Water Utilities Company (Marafiq) announced today, Thursday, that it has received official notification from Saudi Aramco regarding the adjustment of energy product prices used in production operations, effective January 1, 2026. This announcement comes as part of the ongoing updates to feedstock and energy product prices in the Kingdom.
In a statement published on the Saudi Stock Exchange (Tadawul) website, Marafiq revealed that the initial estimates for the expected financial impact of this price increase will be approximately 5.6% of the total cost of sales. This percentage was calculated based on the company's latest audited annual financial statements for 2024, and the statement indicated that this financial impact will begin to be reflected in the company's results starting from the first quarter of the 2026 fiscal year.
The company's plan for dealing with changes
Marafiq confirmed that it will not stand idly by in the face of these changes in operating costs. The executive management is currently working on a comprehensive strategy to mitigate the financial impact of this increase. The plan includes a strong focus on improving the efficiency of production processes, enhancing plant reliability, and implementing rigorous initiatives to reduce overall costs, thereby contributing to maintaining the company's profit margins and competitiveness.
The context of energy reforms in the Kingdom
This measure comes within the broader context of the energy price reform program adopted by the Kingdom of Saudi Arabia as part of Vision 2030. These structural reforms aim to improve energy efficiency and incentivize industrial sectors to adopt more sustainable and resource-efficient technologies. Reviewing energy product and feedstock prices is a necessary step to reduce economic distortions and promote the optimal use of national natural resources, thereby supporting the national economy in the long term.
The strategic importance of the utilities company
Marafiq is the backbone of industrial services in the industrial cities of Jubail and Yanbu, providing electricity, water, and cooling services to major industrial facilities. Given the scale of its operations, any adjustment to energy input prices necessitates a highly efficient operational response. The company's early disclosure of the financial impact (before 2026) reflects its commitment to transparency with shareholders and investors and allows ample time to adapt its business model to the new cost structure before the new prices take effect.
