Saudi Electricity Company reported a sharply wider fourth-quarter net loss on Sunday, partly on costs related to workers who have been let go by the utility.

The company said it had a net loss of 1.09 billion riyals ($290.7 million) in the three months to Dec. 30, compared with a loss of 514 million riyals in the same quarter in 2011.

One analyst at EFG Hermes had forecast a loss of 750 million riyals, according to a Reuters survey.

Saudi Electricity's shares were down 1.08 percent on the Saudi stock exchange in early afternoon trade.

"The reason for the rise in net losses for the fourth quarter compared with the same quarter a year earlier is due to the rise in costs of non-recurrent programs to improve production," the statement said, referring to future commitments for people who have left the company.

The partly state-owned monopoly holder is working to restructure its operations pending further privatisation of its operating units.

Operating losses narrowed by 2 percent to 622 million riyals from 636 million riyals in the same period a year earlier.

Its results are highly seasonal due to the wide variation between summer and winter electricity demand in the sweltering desert kingdom. The utility benefits from very cheap energy feedstock supplied by Saudi Arabian Oil Co. (Saudi Aramco). – Reuters