Petro Rabigh says committed to capital increase

Rabigh Refining and Petrochemical Co. (Petro Rabigh) said it was still committed to its board’s decision of April 13, 2015, to increase capital through a rights issue.

The company’s plan to appoint a financial consultant to execute the rights issue at the “appropriate time” was still valid in accordance with the updated announcement made on Dec. 31, 2015, it added in a statement to the Saudi Stock Exchange on Tuesday.

The company, whose first half profit plummeted 90 percent to SAR 70.5 million, said in December last year that it planned to increase capital through a SAR 9.2 billion rights issue.

It previously said the capital increase would be SAR 7.04 billion, but adjusted the plan as cost at its Rabigh Project (Phase II) rose by SAR 1 billion because of the oil market glut.

Petro Rabigh is a 50-50 joint venture between Japan’s Sumitomo Chemicals and state-owned energy firm Saudi Aramco.