SIIG says two JVs cut their capital, its share stands at SAR 703 mln

Saudi Industrial Investment Group (SIIG) announced on Thursday that its 50% owned joint ventures, Saudi Chevron Phillips (SCP) and Jubail Chevron Phillips (JCP), decided to cut their capital.

SIIG added in a bourse statement that both companies have sufficient financial reserves with zero debts, noting that they would be able to apply for loans in the future, if needed.

The share capital of SCP was reduced from SAR 655 million to SAR 244 million, while JCP’s share capital was reduced from SAR 1.478 billion to SAR 484 million. SIIG's share of the capital cut stands at SAR 703 million, according to the statement.

The amount will be reimbursed to the companies' shareholders in light of available cash flows in the upcoming years.

SIIG also said that this step will help the company allocate no additional provisions for statuary reserve, and reduce previous provisions for both JVs.