‎“Petro Rabigh”: Accumulated losses have reached 38.34% of its ‎capital

Rabigh Refining and Petrochemical Company (Petro Rabigh) announced that its accumulated losses reached 38.34% of the capital amounting to 16.71 billion riyals, based on the unaudited financial results for the month of December 2023 AD, which was closed on January 16, 2024 AD.

The company explained in a statement on Tadawul that it incurred these losses mainly for the following reasons:

• Difficult market conditions that negatively affected margins for both refined and petrochemical products.
• Scheduled suspension of the second phase units starting from December 1, 2022 to January 23, 2023.

Unplanned shutdown of the ethane cracker unit, starting from March 1, 2023, to March 20, 2023, to perform the necessary maintenance to enhance the reliability of the plant, as well as the unplanned shutdown of the Olefins Cracking Unit with Catalysts (HOFCC) to perform the necessary repairs and maintenance during the month of December.

A one-time provision of 365.7 million riyals during the nine-month period ending September 30, 2023, related to a claim filed by a third party against the company.

• The significant increase in financing costs due to rising interest rates

According to the company, the amount of accumulated losses is 6.4 billion riyals, provided that the procedures and instructions for companies whose shares are listed on the Saudi financial market and whose accumulated losses amount to 20% or more of their capital are applied.