Petro Rabigh cuts accumulated losses to 39.9% of capital

Logo of Rabigh Refining and Petrochemical Co. (Petro Rabigh)

Rabigh Refining and Petrochemical Co. (Petro Rabigh) said its accumulated losses fell to 39.94% of capital as of Oct. 31, down from 51.29% a month earlier, bringing total accumulated losses to SAR 8.77 billion.

The company said in a statement to Tadawul that the decline followed a SAR 5.26 billion capital increase through the issuance of 526.36 million class B ordinary shares to its founding shareholders.

With accumulated losses now below 50% of capital, Article 132 of the Companies Law and related Capital Market Authority (CMA) rules for listed companies whose accumulated losses reach 50% or more no longer apply, it added. However, CMA regulations covering companies whose accumulated losses reach 20% or more of capital remain in force.

Petro Rabigh said the capital increase reflects the ongoing support of its founding shareholders and aims to strengthen its financial position and support the execution of its transformation strategy.

According to data available with Argaam, the company’s extraordinary general meeting (EGM) approved last September a board recommendation to increase the company’s capital by 31.5%, amounting to SAR 5.26 billion, in favor of the founding shareholders—Saudi Aramco and Sumitomo Chemical Co. Ltd.