Transformation plan to boost competitiveness, financial results: Petro Rabigh CEO

Othman Al Ghamdi, CEO of Rabigh Refining and Petrochemical Co. (Petro Rabigh)

Rabigh Refining and Petrochemical Co. (Petro Rabigh) launched a comprehensive transformation plan to restore financial stability and profitability, built on four key pillars, said President and CEO Othman Al Ghamdi.
 

Speaking to Asharq TV, Al Ghamdi said the first pillar is the recently announced capital restructuring, aimed at reducing debt to $4 billion and cutting accumulated losses by 70%.
 

The second pillar focuses on restoring reliability and operational efficiency at the plants, noting that comprehensive maintenance of facilities and equipment was successfully completed in Q2 of this year — a process carried out every five years.
 

The third pillar focuses on improving profit margins and reducing operating costs, while the fourth pillar involves converting some low-value products into high-value ones.
 

Al Ghamdi noted that three medium-scale projects worth $80–120 million each have already been approved under the fourth pillar, with completion targeted within two years, while a project to convert heavy fuel oil remains under study.
 

The three approved projects are medium-cost, ranging between $80 million and $120 million each, he added, noting that, according to the plan, they are scheduled for completion within the next two years.
 

He stressed that the successful execution of the plan will strengthen the company’s competitiveness and support its financial performance.
 

According to data available with Argaam, Petro Rabigh’s board of directors recommended increasing the company’s capital by 31.5%, equivalent to SAR 5.26 billion, in favor of its founding shareholders, Saudi Aramco and Sumitomo Chemical Co., with the aim of improving operations and strengthening its financial position.
 

The board also recommended a subsequent capital reduction, lowering the company’s capital from SAR 21.97 billion to SAR 16.71 billion by reducing the nominal value of Class A common shares from SAR 10 to SAR 6.85 per share, in order to reduce accumulated losses.
 

The company reported a net loss of SAR 2.1 billion for H1 2025, compared with SAR 2.5 billion a year earlier, with Q2 losses reaching SAR 1.4 billion.
 

Accumulated losses stood at SAR 7.33 billion as of June 30, 2025, representing 43.9% of its SAR 16.71 billion capital.