Rabigh Refining and Petrochemical Co. (Petro Rabigh) Announces its Accumulated Loses Reaching 38.34% of its Capital
| Element List | Explanation |
|---|---|
| Introduction | Rabigh Refining and Petrochemical Co. (Petro Rabigh) announces that its accumulated loses has reached 38.34% of its share capital of Saudi Riyals 16,710 million based on the unaudited financial results for the month of December 2023 that was closed on January 16, 2024G corresponding to Rajab 4, 1445H. |
| Date of Realization of the Loss | 2024-01-16 Corresponding to 1445-07-04 |
| Amount of the Accumulated Losses | 6,406,147,620 |
| Percentage of the Accumulated Losses out of the Capital (%) | 38.34 % |
| Major Reasons Leading to the Losses | The Company incurred these losses primarily due to the following reasons:
• The challenging market conditions adversely affecting the margins for both refined and petrochemical products. • The planned turnaround of its Phase II units starting from December 1, 2022, to January 23, 2023. • The unplanned shutdown of the Ethane cracker unit starting from March 1, 2023, to March 20, 2023, for necessary maintenance activities to enhance the plant’s reliability and the unplanned shut down of the High Olefins Fluid Catalytic Cracker (HOFCC) unit for necessary repairs & maintenance during December 2023. • A one-off provision of Saudi Riyals 365.7 million during the nine months period ended September 30, 2023, relating to a claim raised by a third-party against the Company. • The significant increase in the financing costs because of rising interest rates. |
| Measures to be Taken by the Company in Regard to Such Losses | Not Applicable |
| Application of the Procedures and Instructions | Procedures and Instructions Applicable on Companies Listed in Saudi Capital Market Whose Accumulated Losses Reach 20% or more out of the Capital Thereof will be Applied |
| Reference to additional procedures or instructions | Not Applicable |
| Additional Information | Not Applicable |
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