Mobily Q4 losses based on 'tightened' precautions, says chairman

Etihad Etisalat Co. (Mobily) said its audited financials for 2014 took into account all “precautionary” measures to mitigate medium and long-term risks, according to Sulaiman Al-Gwaiz, chairman of the company.

The mobile services provider suffered additional losses of SAR 1.13 billion ($301.3 million) during the fourth quarter of 2014, Al-Gwaiz said in a press release obtained by Argaam.

Mobily issued a statement on Tuesday citing reasons behind its staggering losses last fiscal year. The company clarified that it will be able to fulfill all financial obligations and debts, thanks to credit facilities.

Saudi Arabia’s market regulator said the stock will resume trading this Thursday. The stock has been suspended since Wednesday of last week pending Mobily’s clarifications regarding its financial troubles.

The operator last week announced a net loss of SAR 913 million ($243 million) for last year's audited results after reporting a net profit of SAR 220 million ($58.7 million) in its preliminary financials. At the time, Mobily said it expected to breach long-term loan agreements.

On Monday, the regulator said on its website that it is investigating possible insider trading in the shares of Mobily.