Riyadh – Mubasher: The net losses of Rabigh Refining and Petrochemical Company (Petro Rabigh) hiked by 14.12% year-on-year (YoY) to SAR 2.46 billion in the first half (H1) of 2024 from SAR 2.16 billion.
The revenues amounted to SAR 17.99 billion in H1-24, down 16.92% from SAR 21.66 billion in H1-23, according to the interim financial results.
Loss per share hit SAR 1.48 in January-June 2024, higher than SAR 1.29 a year earlier.
Income Results for Q2-24
Petro Rabigh incurred net losses valued at SAR 1.10 billion in the second quarter (Q2) of 2024, down 8.02% YoY from SAR 1.19 billion.
During the three-month period that ended on 30 June 2024, the revenues fell by 6.28% to SAR 10.01 billion from SAR 10.68 billion in Q2-23.
Quarter-on-quarter (QoQ), the net losses reported in Q2-24 shrank by 19.41% from SAR 1.36 billion in Q1-24, while the revenues jumped by 25.38% from SAR 7.98 billion.
Accumulated Losses
The accumulated losses of Petro Rabigh SAR 8.87 billion reached as of 30 June 2024, which represents 53.09% of the capital.
Joint Deal with Aramco
Saudi Arabian Oil Company (Aramco) signed a definitive agreement to acquire an additional stake of around 22.50% in Petro Rabigh from Tokyo-headquartered Sumitomo Chemical Company Limited for $702 million.
Aramco and Sumitomo own 37.50% of shares in Petro Rabigh, each. Following the transaction, priced at SAR7 per share, Aramco will become Petro Rabigh’s largest shareholder with an equity stake of approximately 60%, while Sumitomo Chemical will retain an equity ownership of 15%.
The oil giant plans to provide additional funds to Petro Rabigh to boost its financial position and back its future strategy, bringing the aggregate injection amount to $1.40 billion.
Furthermore, Aramco and Sumitomo agreed to a phased waiver of shareholder loans of $750 million, each, which will result in a $1.50 billion direct reduction in Petro Rabigh’s liabilities.
Hussain Al Qahtani, Aramco Senior Vice President of Fuels, said: “By increasing our shareholding, we expect to achieve even closer integration with Petro Rabigh and facilitate its turnaround strategy. We look forward to building on our existing relationship with Petro Rabigh, in alignment with our strategic goals.”
Seiji Takeuchi, Senior Managing Executive Officer of Sumitomo, commented: “We believe this transaction, which aligns with the strategic directions Aramco and Sumitomo Chemical are respectively pursuing, will significantly enhance Petro Rabigh’s financial position.”
Aramco recently disclosed its financial results for H1-24, posting net profits valued at SAR 211.28 billion.
