SVCP halts board, committee remuneration for 2025-2026, MD’s salary

Logo of Saudi Vitrified Clay Pipes Co. (SVCP)

Saudi Vitrified Clay Pipes Co. (SVCP) board of directors unanimously decided, on Oct. 19, to suspend the payment of remuneration due to board and committee members for the financial years 2025 and 2026 until the company’s financial position improves and adequate cash liquidity becomes available.

The board also temporarily suspended the payment of the managing director’s (MD) salary, which has effectively been suspended since October 2025, the company said in a Tadawul statement.

These measures will remain in effect until the company’s financial position improves and adequate cash liquidity becomes available, as determined by the board of directors based on its assessment of the company’s financial position and cash flows, it added.

This decision is made considering the company’s current financial circumstances and the cash flow challenges it faces due to delays in collecting outstanding receivables from several of its customers, amid a slowdown in projects and related spending. These factors have placed pressure on the company’s cash liquidity and its ability to meet its financial obligations as they fall due.

According to the company, the decision aims to preserve available cash liquidity and ease pressure on cash flows, thereby supporting the stability of its financial position and helping to direct cash resources towards meeting priority operational and financial obligations. The quantitative financial impact of the decision cannot currently be determined.

The decision is temporary and will be reviewed periodically in light of developments in the company’s financial position, cash flows, and receivables collection rates. Any measures regarding the resumption of payments will be taken in accordance with the board of directors’ resolutions and the applicable laws and regulations, the statement added.

The company also reaffirmed its commitment to taking appropriate measures to preserve cash liquidity and strengthen its ability to meet its financial and operational obligations.