Saudi Cable CEO says capital increase file 'on right track'

Khalid Khashogji, CEO and Managing Director of Saudi Cable Co.

Khalid Khashogji, CEO and Managing Director of Saudi Cable Co., said revenue growth is driven by rising demand and the scale of ongoing projects in Saudi Arabia.

This prompted the company to enhance its customer base to keep up with the momentum of the local economy, Khashogji told Argaam in an interview.

The group's net profit increased from SAR 18 million to SAR 48.8 million in 2024.

The CEO explained that the company's share of income from its associate, Midal Cables Co., rose from SAR 73.9 million to SAR 127.2 million, marking a 90% growth. This reflected the associate's improved performance.

Saudi Cable, according to the top executive, recorded a net profit of SAR 66.27 million from continuing operations, while it incurred a net loss of SAR 17.5 million from discontinued business, bringing the overall bottom line to SAR 48.8 million in 2024. The earnings per share reached SAR 7.31 for the same year.

The group’s accumulated losses decreased from SAR 525.5 million to SAR 476.7 million as of Dec. 31, 2024. This reflected the start of a gradual recovery given the resumption of profit-making and sustainable continued business.

Regarding the capital increase file, Khashogji said it is currently under review by the financial advisor, Albilad Capital, for final adjustments, in collaboration with the company’s financial management.

He noted that work on this file began over five months ago. Given that the company is currently undergoing financial restructuring, all necessary legal approvals have been secured.

Although the planned capital hike has faced several challenges due to the company’s exceptional circumstances and legal restrictions, “it is now on the right track”, Khashogji added.

As for the latest in Saudi Cable’s financial restructuring process, the former financial trustee has handed over all the related documents to the newly appointed one. However, the review and verification of these documents required more time.

Saudi Cable is now working with the newly appointed financial trustee to audit and review the list of creditors’ claims to ensure the rights of both the company, its shareholders and creditors are protected optimally, in line with the relevant regulatory procedures.

The company is committed to maintaining and strengthening its competitiveness in the local cable manufacturing sector, in line with Saudi Arabia’s economic directives, the CEO highlighted.

Regarding the court ruling to overturn a previous decision approving the list of creditors’ claims, Khashogji clarified that the decision entailed the annulment of the claim submission carried out by the former trustee, Walid bin Mohammed Subhi, overturning the court ruling issued on March 13, 2024.

The judge had ruled to annul the former creditors’ claims registered under request No. 131, submitted by Subhi in the bankruptcy case No. 103 for the year 2024. Additionally, Khalid bin Abdulaziz Hawsawi was appointed as the new financial trustee, claiming his responsibilities, powers, and duties as defined under the Bankruptcy Law and its regulations.

According to Argaam data, Saudi Cable posted a net profit of SAR 48.8 million for 2024, with Q4 net earnings reaching SAR 5.8 million.