Ibrahim Al-Buainain,Chairman ofRabigh Refining Petrochemical Co. (Petro Rabigh)
Rabigh Refining Petrochemical Co. (Petro Rabigh)’s capital increase structure announced today, Aug. 31, aims to support the company’s financial stability and long-term growth, and empowers Petro Raghib to raise the required capital from founding shareholders, while minimizing the impact on the ownership and control of existing shareholders, Chairman Ibrahim Al-Buainain said in an interview with Al Ekhbariya TV. 
Al-Buainain pointed out that the company opted for Class B shares which provide a strategic tool to strengthen the company’s financial position without affecting the existing shareholders’ rights.
The new structure is a tailor-made solution for Petro Rabigh, and the first of its kind in the Saudi market, reflecting an innovative approach to capital restructuring, the Chairman noted.
The company faced many challenges over the past decade that affected its financial performance, with high debt levels being one of the most significant challenges that pressured its financial position, he added.
To address this, the company launched a financial discipline program and debt repayment plan.
Petro Rabigh is implementing a clear financial plan supported by founding shareholders Saudi Aramco and Sumitomo. The founding shareholders completed the waiver of a $1.5 billion loan, and are set to inject $1.4 billion through subscribing to the Class B shares to be issued after the shareholders’ approval.
These steps, along with regular loan repayments, will help the company reduce total debt to nearly $4 billion by the end of this year – the lowest in 10 years. This will also reduce financing costs, improve cash flows, and give the company flexibility to invest in future value-creating opportunities, placing it on a solid financial footing going forward.
Looking ahead, Al-Buainain said Petro Rabigh will advance its restructuring plan and seek shareholder approval in September. The company also aims to strengthen its market position and pursue new growth opportunities, with a focus on high-value petrochemicals, operational efficiency and integration. He stressed that these initiatives are in line with the priorities of major shareholders Saudi Aramco and Sumitomo, as well as the Kingdom’s broader economic and energy objectives.
The board proposed a 31.5% capital increase, worth SAR 5.26 billion, in favor of the founding shareholders. This will be followed by a capital reduction from SAR 21.97 billion to SAR 16.71 billion to offset accumulated losses.
Petro Rabigh posted a net loss of SAR 2.1 billion for H1 2025, compared with SAR 2.5 billion a year earlier. Second-quarter losses amounted to SAR 1.4 billion. As of June 30, accumulated losses reached SAR 7.34 billion, or 43.9% of capital.
Ibrahim Al-Buainain,Chairman ofRabigh Refining Petrochemical Co. (Petro Rabigh)
Rabigh Refining Petrochemical Co. (Petro Rabigh)’s capital increase structure announced today, Aug. 31, aims to support the company’s financial stability and long-term growth, and empowers Petro Raghib to raise the required capital from founding shareholders, while minimizing the impact on the ownership and control of existing shareholders, Chairman Ibrahim Al-Buainain said in an interview with Al Ekhbariya TV.
Al-Buainain pointed out that the company opted for Class B shares which provide a strategic tool to strengthen the company’s financial position without affecting the existing shareholders’ rights.
The new structure is a tailor-made solution for Petro Rabigh, and the first of its kind in the Saudi market, reflecting an innovative approach to capital restructuring, the Chairman noted.
The company faced many challenges over the past decade that affected its financial performance, with high debt levels being one of the most significant challenges that pressured its financial position, he added.
To address this, the company launched a financial discipline program and debt repayment plan.
Petro Rabigh is implementing a clear financial plan supported by founding shareholders Saudi Aramco and Sumitomo. The founding shareholders completed the waiver of a $1.5 billion loan, and are set to inject $1.4 billion through subscribing to the Class B shares to be issued after the shareholders’ approval.
These steps, along with regular loan repayments, will help the company reduce total debt to nearly $4 billion by the end of this year – the lowest in 10 years. This will also reduce financing costs, improve cash flows, and give the company flexibility to invest in future value-creating opportunities, placing it on a solid financial footing going forward.
Looking ahead, Al-Buainain said Petro Rabigh will advance its restructuring plan and seek shareholder approval in September. The company also aims to strengthen its market position and pursue new growth opportunities, with a focus on high-value petrochemicals, operational efficiency and integration. He stressed that these initiatives are in line with the priorities of major shareholders Saudi Aramco and Sumitomo, as well as the Kingdom’s broader economic and energy objectives.
The board proposed a 31.5% capital increase, worth SAR 5.26 billion, in favor of the founding shareholders. This will be followed by a capital reduction from SAR 21.97 billion to SAR 16.71 billion to offset accumulated losses.
Petro Rabigh posted a net loss of SAR 2.1 billion for H1 2025, compared with SAR 2.5 billion a year earlier. Second-quarter losses amounted to SAR 1.4 billion. As of June 30, accumulated losses reached SAR 7.34 billion, or 43.9% of capital.
