NATPET says Alujain did not announce material developments on Yanbu Plant

Saudi Arabia's National Petrochemical Industrial Co. (NATPET) CEO Khalid Zazoog told Argaam on Tuesday that his company informed Alujain Corporation (Alujain) twice of the delayed operations in the polypropylene production line, however, the latter did not announce such a material development.

“The reconstruction works in the Yanbu plant, which were slated for completion in November 2019, will continue to the beginning of 2020 due to some equipment delivery and delayed work permits,” Zazoog added.

As for the insurance claim related to the fire incident in NATPET Yanbu plant, NATPET CEO stated that investigations are still going.

Zazoog also indicated that NATPET was used to provide Alujain with its quarterly financial statements, though it has to submit annual financial results in line with the regulations of the Ministry of Commerce and Investment (MOCI).

NATPET's board of directors approved Alujain's request to hold a general assembly meeting on June 24, 2019 and vote on issuing quarterly financial statements to the company's shareholders.

Alujain, which owns 57.4 percent of NATPET, had surprisingly voted against obligating NATPET's board to issue quarterly financials. The external editor, in turn, was unable to prepare the quarterly financials.

NATPET delivered its Q2 2019 financial results and other relevant data to Alujain’s external auditor, provided that Alujain obtains its shareholders’ and other regulatory approvals on NATPET’s issuing of quarterly results.

“Alujain’s shareholders voted against obligating NATPET's board to issue quarterly financials, and we will not violate the applied regulations,” stated Zazoog.

He also highlighted that Alujain's failure to disclose its financials on time and the trade suspension were related to the aforementioned vote.

Alujain expects to receive cash dividends from NATPET, as the polypropylene producer did not pay dividends for fiscal year 2018.

“The board of directors cannot recommend a dividend payout as we are in a reconstruction process, and we have inked deals with the insurance company as well as other creditors. Alujain filed a claim in this respect and we are awaiting the court’s ruling,” Zazoog concluded.