Petro Rabigh expects better performance on Rabigh II operation: Al-Mahasher

Rabigh Refining and Petrochemical Co. (Petro Rabigh) is expected to show stronger performance going forward, backed by improved production and operation of the Rabigh II project, chief executive Nasser Al-Mahasher, told Argaam in an exclusive on Tuesday.

Operations were commenced at all plants in the project’s second phase and the company is close to conducting the Lenders Reliability Test, which requires no single stoppage due to any fault.

Petro Rabigh is likely to fully pay the first phase’s commercial loans, or almost 50 percent of its debt, which is valued at almost SAR 9.8 billion, by 2020, Al-Mahasher said, adding that the company’s liquidity and profitability will see improvement.

He added that the planned capital hike is due to take place this year or in 2019, as the company is in talks with HSBC Saudi Arabia, the financial advisor, to determine the timing and process of the offering.

Meanwhile, Al-Mahasher attributed the company’s 2017 strong performance to stable production at the industrial complex, continuous improvement of all production units, higher output and sales, and a rise in the average selling prices despite a partial decline in refined products’ profit margins.

“The company’s volatile performance was attributed to external factors, which led to unplanned shutdowns or faults. Petro Rabigh is currently taking all precautions required for emergency glitches and is conducting a regular inspection of all plants,” Al-Mahasher added.

A program was developed to maintain performance reliability and improve regular maintenance, which will help the company operate all plants with full capacity and overcome price fluctuations.

The company reported a net profit of SAR 1.42 billion for fiscal year 2017, compared to SAR 35 million a year earlier.