Ibrahim Al-Buainain,Chairman ofRabigh Refining Petrochemical Co. (Petro Rabigh)
Ibrahim Al-Buainain, Chairman of Rabigh Refining and Petrochemical Co. (Petro Rabigh), mentioned the corporate’s newly introduced capital improve plan will bolster monetary stability and long-term progress, permitting it to lift funds from founding shareholders whereas minimizing the affect on current shareholders’ possession and management.
Chatting with Al Ekhbariya TV, Al-Buainain defined that the issuance of Class B shares gives a strategic software to bolster the corporate’s stability sheet.
The construction is the primary of its variety within the Saudi market, tailor-made to Petro Rabigh’s circumstances and reflecting an modern strategy to capital restructuring, the Chairman defined.
Al-Buainain famous that top debt ranges have been one of many firm’s important challenges in recent times. To handle this, founding shareholders Saudi Aramco and Sumitomo waived a $1.5 billion mortgage and pledged to inject $1.4 billion by way of the deliberate Class B issuance, pending the shareholders’ approval.
Along with common repayments, these measures are anticipated to decrease Petro Rabigh’s whole debt to round $4 billion by year-end—its lowest degree in a decade. This can minimize financing prices, enhance money flows, and supply flexibility to put money into future progress alternatives.
In accordance with Argaaminformation, Petro Rabigh’s board really helpful a 31.5% capital improve, or SAR 5.26 billion, in favor of the founding shareholders, adopted by a capital discount from SAR 21.97 billion to SAR 16.71 billion to offset amassed losses.
Petro Rabigh reported a web lack of SAR 2.1 billion for H1 2025, in contrast with SAR 2.5 billion a 12 months earlier. Second-quarter losses reached SAR 1.4 billion, whereas amassed losses stood at SAR 7.34 billion as of June 30, representing 43.9% of capital.
