Rabigh Refining and Petrochemical Company (Petro Rabigh) said on Sunday it has cut its accumulated losses to 14.77% of share capital, dropping below a key regulatory threshold after a capital reduction and a return to profit.

A leading petrochemical company in the region, Petro Rabigh is a joint venture between Saudi oil ginat Aramco and Japan's Sumitomo Chemical, 

The Saudi-listed company said accumulated losses stood at SAR2.47 billion ($658 million), down to below the 20% threshold that triggers regulatory requirements for listed firms under Saudi Arabia’s Companies Law.

The reduction follows shareholder approval in March to cut the company’s capital to SAR16.7 billion from SAR21.97 billion, with the nominal value of shares lowered to SAR6.85 from SAR10. The move eliminated SAR5.26 billion of accumulated losses.

Petro Rabigh also reported a net profit of SAR1.47 billion for the period ended March 31, supported by higher refined product prices, improved margins and stronger operational performance.

The company said improved plant reliability helped boost volumes across refined and petrochemical products, while lower finance costs - driven by early debt repayments and declining interest rates - further supported earnings.

Following the capital reduction and improved results, the company said regulatory provisions tied to accumulated losses exceeding 20% of capital no longer apply.-TradeArabia News Service