Petro Rabigh Reports Accumulated Losses Fall Below Key Threshold
RABIGH, saudi Arabia – Petro Rabigh announced today that its accumulated losses have decreased to 39.94% of its capital, falling below the 50% mark stipulated by the Companies Law and regulations set forth by the Capital Market Authority (CMA). this reduction removes the company from specific restrictions applied to listed entities with losses exceeding half their capital.
The shift signifies a positive development for Petro Rabigh, easing regulatory burdens and signaling improved financial health. Previously subject to stringent CMA procedures for companies with losses of 50% or more, Petro Rabigh now operates under a different set of guidelines, specifically those applying to companies with accumulated losses between 20% and 50% of capital. The change reflects continued support from founding shareholders and enables the ongoing implementation of the company’s transformation strategy.
According to the company, the decrease in accumulated losses means the provisions of Article (132) of the Companies Law, and related CMA instructions, are no longer applicable. However, existing instructions pertaining to companies with losses of 20% or more of their capital remain in effect.
This news follows the approval of a 31.5% capital increase – valued at 5.26 billion riyals – by Petro Rabigh’s Extraordinary general Assembly last September. The capital increase was designed to bolster the company’s financial position and was fully subscribed by founding shareholders Saudi Aramco and Sumitomo Chemical company limited.
The company stated the capital increase demonstrates the continued commitment of its shareholders to strengthening its financial foundation and facilitating its strategic transformation.
