Arabian Pipes to use statutory reserve to offset accumulated losses worth SAR 39.9 mln

Logo of Arabian Pipes

Arabian Pipes Co. said that following the capital cut approval, its accumulated losses as of Sept. 30, 2021, reached around SAR 39.9 million (39.9% of capital).

Accordingly, the board of directors decided to reduce the accumulated losses by using part of the statutory reserve. Thus, the balance of accumulated losses will be approximately 0%, according to a bourse filing.

The company will make an independent announcement regarding the decrease in accumulated losses according to the bylaws and regulations after the external auditor completes the necessary reports, the statement added.

Arabian Pipes’ shareholders approved reducing the capital by 75%, from SAR 400 million to SAR 100 million, to restructure capital in order to offset accumulated losses, during an extraordinary general assembly meeting (EGM) held on Feb. 20, according to data compiles by Argaam.