SVCP shareholders OK statutory reserve transfer to offset losses

Logo of Saudi Vitrified Clay Pipes Co. (SVCP) 

Saudi Vitrified Clay Pipes Co. (SVCP) shareholders approved the transfer of the statutory reserve balance of SAR 75 million, as per the annual financial statements ended Dec. 31, 2023, during the extraordinary general meeting (EGM) held on Nov. 5, according to a statement to Tadawul.

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The transfer aims to offset the company’s accumulated losses of SAR 35.25 million, which represent 23% of its capital, based on the interim financial statements for the period ended June 30, 2024.

Shareholders also approved amending the company’s Articles of Association in line with the new Companies Law, as well as rearranging and renumbering the articles to reflect the proposed amendments, the statement added.