Petro Rabigh deepens 9M 2024 net loss to SAR 3.77B; Q3 at SAR 1.3B

Rabigh Refining and Petrochemical Co.’s (Petro Rabigh) net losses deepened in the first nine months of 2024 to SAR 3.77 billion, compared to SAR 3.31 million in the year-earlier period.

The wider losses were attributed to lower sales volumes of refined and petrochemical products, pressured by challenging market conditions and declining prices. This is besides the unscheduled shutdown of the High Olefins Fluid Catalytic Cracking (HOFCC) unit in Q1 2024 for repairs and maintenance, which further squeezed sales.

Additionally, margins on refined and petrochemical products weakened year-on-year (YoY), while costs rose for ethane, diesel fuel, and sales gas starting January 2024, given the soaring freight costs due to disruptions in Red Sea shipping routes. The nine-month period also saw a YoY rise in financing costs (FCs) amid higher interest rates.

In Q3 2024, net losses deepened by 13.5% YoY to SAR 1.3 billion, from SAR 1.14 billion in Q3 2023. This was due to lower sales on reduced sales volumes and prices of refined products amid tough market conditions and price declines.

Weaker profit margins on refined and petrochemical products, rising costs for ethane, diesel fuel, and sales gas from January 2024, alongside the elevated freight costs on the ongoing Red Sea disruptions, also impacted the third-quarter performance. However, FCs fell in Q3 2024 due to a partial waiver of shareholder loan facilities during the three-month period.

On a quarterly basis, losses widened from SAR 1.1 billion in Q2 2024 as revenues also tumbled quarter-on-quarter (QoQ) on lower sales amid declining refined product prices and weaker product margins. This was partly offset by reduced FCs, driven by a partial waiver of shareholder loan facilities.

Total shareholders’ equity, no minority interest, stood at SAR 10.58 billion by Sept. 30, 2024, compared to SAR 11.95 billion in the prior-year period.

By the end of the nine-month period, accumulated losses amounted to SAR 6.38 billion, representing 38.16% of capital.

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