Riyadh – Mubasher: Rabigh Refining and Petrochemical Company (Petro Rabigh) incurred net losses worth SAR 3.89 billion in 2025, reflecting a 14.21% decrease from SAR 4.54 billion in 2024.

The loss per share narrowed to SAR 2.33 in 2025 from SAR 2.72 in 2024, according to a bourse filing.

Petro Rabigh generated revenue of SAR 35 billion in 2025, which signaled a 9.45% decrease from SAR 38.66 billion.

Accumulated Losses

As of 31 December 2025, the accumulated losses of Petro Rabigh stood at SAR 9.19 billion.

The amount accounted for 41.83% of the company’s SAR 21.97 billion capital.

Petro Rabigh stated that the primary causes of these losses include unfavorable market conditions leading to lower margins on both refined and petrochemical products as well as higher finance costs due to prolonged higher interest rates.

In addition, the accumulated losses were driven by unplanned shutdown of the high olefins fluid catalytic cracker (HOFCC) and ethane cracker units during 2024 for necessary repairs and maintenance and the full shutdown of the production complex for 60 days during 2025 to conduct comprehensive, scheduled periodic maintenance.

This is besides the increased cost of feedstock, including ethane, fuel oil, and gas sales during 2024 and 2025, as well as higher freight costs due to shipping disruptions in the Red Sea.

Measures to Decrease Accumulated Losses

Petro Rabigh elaborated that the measures taken to narrow the accumulated losses percentage to the company’s share capital are as follows:

During 2024 and 2025, Saudi Arabian Oil Company (Saudi Aramco) and Sumitomo Chemical Co. Ltd. (SCC), both are the founding shareholders of Petro Rabigh, implemented a series of measures to strengthen the financial position of Petro Rabigh and support its turnaround strategy.

These measures included the waiver of the revolving shareholder loans amounting to SAR 5.62 billion, recognized in 2024 and 2025, which was adjusted against a portion of the accumulated losses.

In addition, both founding shareholders injected SAR 5.26 billion through a capital increase approved by the extraordinary general assembly, which resulted in the issuance of 526.36 million Class B ordinary shares. The company received the proceeds of this share capital increase in October 2025 and used the funds to prepay a portion of its outstanding debts in the amount of SAR 5.26 billion.

Furthermore, on 29 August 2025, the board of Petro Rabigh issued its recommendation to decrease the capital from SAR 21.97 billion to SAR 16.70 billion through reducing the nominal value of each Class A ordinary share from SAR 10 to SAR 6.85 without cancelling any shares to write off SAR 5.26 billion of the accumulated losses.

On 12 February 2026, the Capital Market Authority (CMA) approved the company’s application regarding capital reduction. Currently, Petro Rabigh is in the process of completing the remaining regulatory formalities, after which it will convene the shareholders’ meeting on 29 March 2026 to vote on this proposed capital decrease.

In the first nine months (9M) of 2025, Petro Rabigh suffered net losses worth SAR 3.29 billion while registering revenue of SAR 24.35 billion.

As of 31 October 2025, the accumulated losses of the company hit SAR 8.77 billion, which accounted for 39.94% of its capital.