Petro Rabigh accumulated losses reach 38.34% of capital

Logo of Rabigh Refining and Petrochemical Co.’s (Petro Rabigh)

Rabigh Refining and Petrochemical Co.’s (Petro Rabigh) accumulated losses amounted to SAR 6.41 billion, representing 38.34% of the company’s SAR 16.71 billion capital, according to the unaudited financial statements for December 2023, closed on Jan. 16, 2024.

Petro Rabigh explained that these losses were incurred as a result of challenging market conditions that had an adverse impact on margins for both refined and petrochemical products, as well as the planned turnaround of its Phase II units from Dec. 1, 2022, to Jan. 23, 2023, according to a statement to Tadawul.

The reasons also included the unplanned shutdown of the Ethane cracker unit during March 1-20, 2023, for necessary maintenance activities to enhance the plant’s reliability and the unplanned shut down of the High Olefins Fluid Catalytic Cracker (HOFCC) unit for necessary repairs and maintenance during Dec. 2023.

In addition, Petro Rabigh reported a one-off provision of SAR 365.7 million during the nine months period ended Sept. 30, 2023, relating to a claim raised by a third-party against the company.

The company also cited the significant increase in the financing costs because of rising interest rates among the reasons for losses.

Procedures related to Tadawul-listed companies, whose accumulated losses reach 20% or more of capital, will apply, the statement added.