Petrochem completes capital reduction in polymers subsidiary

Logo of National Petrochemical Co.

National Petrochemical Co. (Petrochem) announced the completion of reduction in the capital of its 65%-owned subsidiary, Saudi Polymers Co., to SAR 1.41 billion from SAR 4.8 billion, the company said in a bourse statement today, April 29, 2021.

The capital reduction will halt the building of the statutory reserve in Saudi Polymer Co. but is expected to increase Zakat during the first years of the reduction.

In addition, the return on equity will depend on the availability of cash with the subsidiary during the upcoming years, the statement added.

In September 2019, Petrochem’s board of directors approved to reduce the subsidiary's capital to SAR 1.41 billion from SAR 4.8 billion.