Riyadh – Mubasher: Rabigh Refining and Petrochemical Company (Petro Rabigh) reported a 49.38% year-on-year (YoY) decline in its net losses during the first quarter of 2025.

According to the company's financial statements released on Tadawul on Monday, net losses amounted to SAR 691 million, compared to losses of SAR 1.365 billion in the first quarter of 2024.

The company attributed the decrease in losses to higher sales volume and improved profit margins for both refined and petrochemical products, as a result of relative stability in operational processes.

The decrease in financing costs resulting from the founding shareholders' final and unconditional waiver of the revolving shareholder loans (which the company announced separately on the Saudi Stock Exchange on August 29, 2024 and January 28, 2025) and the decrease in interest rates during the current quarter also contributed to the decrease in net loss.

On a quarterly basis, Petro Rabigh's losses decreased by 11.4% compared to the previous quarter, which recorded losses of SAR 780 million.

The company's revenues jumped 43.95% year-on-year in the first quarter of 2025, reaching SAR 11.49 billion, compared to SAR 7.98 billion in the same quarter last year.

Petro Rabigh announced today that its accumulated losses increased from 33.84% of its capital of SAR 16.71 billion (capital) as of February 28, 2025, to 35.72% of its capital as of March 31, 2025, bringing the value of accumulated losses to SAR 5.97 billion.

The company explained that the main reasons for reaching these accumulated losses are due to unfavorable market conditions, which led to lower profit margins for both refined and petrochemical products and higher financing costs due to high interest rates for long periods, in addition to the scheduled shutdown of the second phase units of the Petro Rabigh complex, and the unscheduled shutdown of the high olefins catalytic cracker ( HOFCC ) unit and the ethane cracker unit to carry out necessary repair and maintenance work.

Petro Rabigh added: "In addition, the cost of feedstock, including ethane, fuel oil, and sales gas, will rise during 2024 and 2025, and shipping costs will rise due to shipping disruptions in the Red Sea."

The company confirmed that it will implement the procedures and instructions issued by the Capital Market Authority regarding companies whose shares are listed on the Saudi Stock Exchange and whose accumulated losses amount to 20% or more of their capital.