Petro Rabigh widens net losses to SAR 3.232 bln in H1 2020

Rabigh Refining and Petrochemical Company (Petro Rabigh) incurred net losses of SAR 3.232 billion for the first half of 2020, compared to net losses of SAR 52 million in year-earlier period.

The company said the losses were incurred as Petro Rabigh complex was fully shut down for test and inspections for two months during the period

In addition, product margins have been lower during H1 2020 due to challenging economic conditions. The on-going global pandemic put further downward pressure on prices. The average throughput for the refinery was 54% lower year-on-year (YoY); while petrochemical products volumes dropped by 15%.

Petro Rabigh incurred net losses of SAR 1.435 billion in Q2 2020, compared to losses of SAR 308 million in Q2 2019, due to lower profit margins. The average throughput for the refinery was 48% lower YoY and overall refined products revenue dropped by 78% YoY. Petrochemical products volumes dropped by 23% YoY.

Product margins were also hit during the current quarter due to challenging economic conditions.

When compared to previous quarter, the company narrowed net losses by 20% from SAR 1.8 million, backed by improved market conditions which have witnessed an uptick in global market demand, as normalcy despite the on-going pandemic is cautiously being restored.The average throughput for the refinery was 19% higher.

The accumulated losses as of June 30, 2020 stood at SAR 2.198 billion, representing 25.09% of the company's SAR 8.76 billion share capital.