‎“Petro Rabigh” records losses of SR964 mln during Q1‎

Rabigh Refining and Petrochemical Company “Petro Rabigh” recorded losses after zakat and tax of 964 million riyals during the first quarter, compared to a profit of 725 million riyals in the same quarter of last year. This came after the announcement today of the preliminary financial results for the period ending in 2023-03. -31 (3 months).

The operational loss amounted to 519 million riyals in the first quarter, compared to a profit of 1.07 billion riyals in the same quarter of the previous year.

As for gross loss, it amounted to 128 million riyals in the first quarter, compared to a profit of 1.48 billion riyals in the same quarter of the previous year.

The loss per share in the current period amounted to 0.58 riyals, compared to a profit of 0.63 riyals in the same period last year.

The reason for achieving net loss during the current quarter compared to net profit for the same quarter of the previous year is mainly due to unfavorable market conditions that negatively affected the margins of petrochemical and refined products. In addition, the company’s industrial complex was partially shut down, in order to carry out scheduled periodic maintenance for the units of the second phase, starting from December 1, 2022, to January 23, 2023. The ethane cracker unit was also stopped, starting from March 1, 2023, to March 20, 2023, to carry out maintenance work. necessary and enhance the reliability of the laboratory. Moreover, the sharp increase in interest rates led to higher financing costs for the current quarter.

The reason for the increase (decrease) in the net profit during the current quarter compared to the previous quarter is due to the decrease in the net loss during the current quarter compared to the previous quarter due to the improvement in market conditions, which positively affected the margins of refined products.

The accumulated losses as of March 31, 2023, according to the preliminary condensed financial statements for the quarter ending on March 31, 2023, amounted to 2,666 million Saudi riyals, representing 15.96% of the company’s capital, amounting to 16,710 million riyals.