Petro Rabigh records losses of SR1.11 bln during 2022‎

Rabigh Refining and Petrochemical Co. recorded a net loss after zakat and tax during the year ending on December 31, 2022 at 1.11 billion riyals, compared to a profit of 2 billion riyals in the previous year. This came after today’s announcement of the annual financial results ending on 12/31/2022.

The operational profit amounted to 12 million riyals during the year ending on December 31, 2022, compared to 3.1 billion riyals in the previous year, a decline of 99.6%.

The total shareholders’ equity “without minority rights” amounted to 15.2 billion riyals in the current year, compared to 8.3 billion riyals in the previous year, with a growth of 83.6%.

The loss per share in the current year reached 0.79 riyals, compared to a profit of 1.77 riyals in the previous year.

– The reason for the net loss during this year compared to the net profit for the previous year is mainly due to unfavorable market conditions that negatively affected the volume of production and profit margins for petrochemical products. In addition to a sharp decline in the margins of some refined products, especially high-sulfur fuel oil and naphtha, during the second half of 2022. Moreover, the company’s industrial complex was partially shut down, in order to conduct scheduled periodic maintenance for the units of the second stage, starting from December 1, 2022 to January 23, 2023. The sharp increase in interest rates also led to higher financing costs for this year.

Additional information:

1- During the current year ending on December 31, 2022, the company increased its capital through a rights issue with a total value of 7,950 million Saudi riyals. As a result of the rights issue, the company’s capital increased from 8,760 million Saudi riyals to 16,710 million Saudi riyals. The proceeds from the rights issue were mainly used to settle the founding shareholders loan amounting to 5,962.5 million Saudi riyals and to settle part of the equity bridge loan amounting to 1,940.5 million Saudi riyals.

2- The accumulated losses as of December 31, 2022, according to the audited financial statements ending on December 31, 2022, amounted to 1,702 million Saudi riyals, representing 10.19% of the company’s capital, amounting to 16,710 million Saudi riyals.