The Saudi “Petro Rabigh” Company for oil refining and petrochemical production announced that it has achieved losses of about 3.84 billion riyals (approximately $ 1.02 billion) in the first nine months of this year, compared to profits of 343 million riyals during the same period of 2019.
The company said, in a statement, to the Saudi Stock Exchange, that the reasons for the losses are due to the complete suspension of the company’s industrial complex to conduct regular maintenance, and the low profit margin for the products. Due to the difficult market conditions and the Corona virus pandemic, which led to a decrease in the demand for products, thus lowering prices further.
The company’s losses during the third quarter of this year (July-September) amounted to about 610 million riyals, compared to 394 million riyals in the comparative quarter of 2019.
The company’s revenues fell to 7.052 billion riyals compared to 8.742 billion riyals in the same quarter of last year, by 19.33%.
The company had recorded a jump in losses in the second quarter of 2020, about 366%, compared to the company’s losses in the same quarter of 2019, to reach 1.44 billion riyals, compared to about 308 million riyals during the same period last year.
Earlier this month, Japanese “Sumitomo Chemical” said that it had loaned with Saudi “Aramco” two billion dollars to their joint refining and petrochemical project, which is facing a capital shortage. Due to the COVID-19 pandemic and maintenance work.
A Japanese Chemical Company spokesman said that Sumitomo plans to provide $ 750 million, or 37.5% of the loan, to Rabigh Refining and Petrochemical Company (Petro Rabigh), while Saudi Aramco will lend the remaining amount.
Petro Rabigh is a joint venture between Saudi Aramco and Sumitomo Chemical of Japan, with a value of about $ 10 billion.
Petro Rabigh was listed in the Saudi Stock Exchange Public Shareholding Market in January 2008, when 25% of the company’s shares were offered for public subscription and the two partners retained 37.5% each.
(Dollar = 3.75 Saudi riyals)