Riyadh – Mubasher: Arabian Pipes Company incurred a net loss after Zakat and tax worth SAR 195.3 million in 2020, against net profits worth SAR 30.2 million in 2019.

The company’s loss per share stood at SAR 4.9 last year, versus earnings per share of SAR 0.76 in 2019, according to a bourse filing on Wednesday.

Revenues shrank by 50% on an annual basis to SAR 369.2 million in 2020 from SAR 741.1 million a year earlier.

The accumulated losses have reached SAR 311 million as on 31 December 2020, accounting for 77.8% of the capital.

In a separate statement, Arabian Pipes said its board recommended reducing and later increasing the capital through a rights issue.

The reduction percentage is 75% that will be carried out by canceling 30 million shares, therefore the capital will stand at SAR 100 million distributed over 10 million shares instead of  SAR 400 million and 40 million shares before the cut.

Arabian Pipes aims to offset the accumulated losses through this capital reduction.

The firm will later increase the capital by SAR 300 million to stand at SAR 400 million distributed over 40 million shares through a rights issue. Arabian Pipes plans to endorse its working capital and financial position while reducing the borrowing rate through this raise.