Saudi Arabian Amiantit Co announces that its accumulated losses have reached 20% of its share capital. The total accumulated losses reached 257,157 million as of 31 March, 2018, which represents 22.26% of the share capital.
The main reasons for the accumulated losses reaching this regulatory limit relate to, the continuation of the decline or the slowdown in the infrastructure projects in the Kingdom during the last two years 2016 and 2017. In addition, the company incurred significant costs related to the restructuring of one of its associates in Europe after the merger of its pipeline operations and technology with a European partner (Hobas) and the establishment of a new joint venture, of which the group holds 50% equity share.
Management is currently working to activate its plans to reduce the accumulated losses through some initiatives since 2016 to date, by reducing administrative and operational costs, restructuring of the group loans, increase efficiency of production through the development of methods for the optimal use of industrial materials and equipment, and administrative & organizational procedures changes expected to improve the business. In addition, the company announces that it will implement and comply with the rules and regulations related to companies listed in the Kingdom, whose accumulated losses reached 20% or more of share capital.