Riyadh – Mubasher: The initial financial statements of Tabuk Agricultural Development Company indicated a 650.55% year-on-year rise in net losses over the third quarter (Q3) of 2019.

Net losses reached SAR 56.35 million in Q3-19 when compared to SAR 7.51 million in the corresponding quarter in 2018, while decreasing by 15.44% on a quarterly basis, according to a bourse filing on Monday.

The increase in losses was due to losses realised from capital projects and others recorded from subsidiaries and sister companies.

Over the first nine months of 2019, the firm’s losses reached SAR 146.5 million from SAR 6.56 million a year earlier, surging by 2,134% year-on-year (YoY).

Meanwhile, the firm’s board recommended reducing the capital by 46.27% to SAR 241.77 million from SAR 450 million to amortize the total accumulated losses which amounted to SAR 208.233 million, representing 46.3% of the capital.

The company further noted that the capital cut and the number of shares shall be subject to the approvals of market authorities and the extraordinary general meeting (EMG), as per a separate statement to the Saudi Stock Exchange (Tadawul) on Monday.

For the first half of 2019, net losses of the Saudi-based firm reached SAR 90.15 million, versus profits of SAR 950,575 in H1-18.