JAZADCO says accumulated losses reach 26.72% of capital

Logo of Jazan Development and Investment Co. (JAZADCO) 

Jazan Development and Investment Co. (JAZADCO) announced today, March 27, that its accumulated losses reached SAR 133.63 million as of Dec. 31, 2024, representing 26.72% of capital.

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In a statement to Tadawul, the company said it provided a SAR 100.8 million guarantee for the Saudi Industrial Development Fund (SIDF) for its 15% stake in a loan worth SAR 672 million granted to Al-Reef Sugar Refining Co. (RESRECO).

On Nov. 17, 2024, SIDF asked for the full loan amount from the guarantors of RESRECO, due to the project's failure to meet its payment obligations.

Accordingly, JAZADCO recognized the guarantee amount as a liability in its financial statements, which had a negative impact on its income statement.

The company stated that the regulations and guidelines for publicly listed companies in the Saudi capital market, whose accumulated losses have reached 20% or more of their capital, will be applied accordingly.