Red Sea cuts accumulated losses to 8.5% of capital

Logo of Red Sea International Co. (RSI)

Red Sea International Co. (RSI) said its accumulated losses fell to 8.5% of capital as of January 31, 2026.

In a statement to Tadawul, the company said accumulated losses amounted to SAR 41 million, noting that it has completed its strategic plan (announced on Nov. 2, 2025) to eliminate accumulated losses.

The move comes as part of ongoing efforts to restructure its financial position and strengthen growth and profitability levels, the statement added.

This was supported by the successful debt conversion process, in addition to the use of the share premium reserve arising from the capital increase to offset accumulated losses.

As a result, the company has moved out of the category of firms whose accumulated losses equal or exceed 20% of capital.

Accordingly, the red flag indicator shown next to the company’s name on the trading screen will be removed, following the disappearance of the conditions that triggered its appearance.

The company said this development reflects the success of its capital restructuring process, which strengthened its financial position and improved its ability to expand, with a focus on previously announced strategic contracts signed by the company.

It also noted that its subsidiary, Fundamental Installation for Electric Work Co. Ltd. (First Fix), is currently preparing for its listing on the main market (TASI), as previously announced in June 2025, which is expected to support sustainability and broaden its operations and customer base.

The company’s extraordinary general meeting (EGM) in January 2026 approved the board’s recommendation to transfer the full share premium reserve of SAR 295.7 million to the accumulated losses account, according to Argaam’s data.