Petro Rabigh cuts accumulated losses to 36.16% of capital

Logo of Rabigh Refining and Petrochemical Co. (Petro Rabigh)

Rabigh Refining and Petrochemical Co. (Petro Rabigh) trimmed its accumulated losses from 53.09% as of June 30, 2024 to 36.16% as of Aug. 31, 2024, or by SAR 6.04 billion.

Saudi Arabian Oil Co. (Aramco) and Sumitomo Chemical Co. Ltd. waived off a portion of revolving shareholders’ loans (RSLs), amounting to SAR 1.87 billion ($500 million) each, Petro Rabigh said in a statement to Tadawul.

This helped offset the accumulated losses.

For more news on listed companies

The aggregate waiver amounts to SAR 3.75 billion ($1 billion), together with related commissions accrued thereon, it added.

Accordingly, Petro Rabigh reduced its loans and borrowings. The amount has been adjusted against its accumulated losses as of Aug. 31, 2024.

The Capital Market Authority (CMA) regulations pertaining to listed companies with accumulated losses at 50% or more of their share capital, will no longer apply to Petro Rabigh.

However, the CMA procedures and instructions related to listed companies with accumulated losses at 20% or more of their share capital will continue to apply, the company added.

The wavier demonstrates the ongoing support by the founding shareholders to improve Petro Rabigh’s financial position and facilitate its turnaround strategy.

According to data available on Argaam, Petro Rabigh recently signed modified agreements on RSLs provided by its founding shareholders, Saudi Aramco and Sumitomo Chemical Co. The RSLs were announced by Petro Rabigh in October 2020.

Meanwhile, Saudi Aramco signed a binding agreement to acquire an additional stake of approximately 22.5% in Petro Rabigh from Sumitomo Chemical Co. for $702 million.

For details on the company's financial position following the reduction, please refer to the attached auditor's report: