Latest news with #accumulatedlosses
Zawya
23-06-2025
- Business
- Zawya
Union Insurance reduces capital by 30.5% to offset accumulated losses
Abu Dhabi: Union Insurance Company reduced its capital by 30.50% from AED 330.93 million to AED 230 million to offset accumulated losses amounting to AED 142.74 million. The transaction will be executed by utilizing AED 41.80 million from reserves, including AED 21.85 million from the statutory reserve and AED 19.95 million from the legal reserve, to partially offset the losses. Meanwhile, the remaining AED 100.93 million will be written off by cancelling a corresponding number of shares. The last trading day before the capital adjustment is scheduled for 24 June 2025, with trading suspended on 25 and 26 June. The capital cut will take effect before trading hours on 30 June 2025, which will also mark the first trading day following the reduction.
Argaam
16-06-2025
- Business
- Argaam
Saudi Kayan says accumulated losses reach 35.59% of capital
Saudi Kayan Petrochemical Co. announced that its accumulated losses reached 35.59% of its capital of SAR 15,000 million, based on the unaudited financial results for May 2025, which were closed on June 15, 2025. In a statement on Tadawul, the company said that the amount of accumulated losses reached SAR 5,338.5 million, explaining that the main reasons behind these losses are the decline in profit margins due to lower average product prices, which were impacted by the slowdown in global economic growth and the increase in input costs. Kayan refinanced on March 16, its Islamic Murabaha loans, amounting to SAR 8.1 billion, with several local banks. The refinancing agreement involved replacing the existing debt with new financing. This agreement is aimed at achieving several strategic goals, most notably sustainable financial planning by maximizing cash liquidity, strengthening the financial position, and providing greater financial flexibility. This will also contribute to improving financial solvency, thereby enhancing returns for shareholders. The company will continue working on improving production efficiency and reducing costs through the initiatives and programs that have been approved. These efforts will help lower expenses and increase revenues in order to achieve the company's objectives and strategies. Procedures and instructions applicable on companies listed in Saudi capital market whose accumulated losses reach 20% or more out of the capital will apply, the statement added.
Zawya
23-05-2025
- Business
- Zawya
Red Sea International sees 62% lower net losses in Q1-25; accumulated losses unveiled
Riyadh: Red Sea International Company logged a 62.23% decrease in net losses to SAR 4.52 million in the first quarter (Q1) of 2025, compared with SAR 11.98 million in Q1-24. Meanwhile, the revenues grew by 6.28% year-on-year (YoY) to SAR 700.66 million in Q1-25 from SAR 659.21 million, according to the financial results. The loss per share stood at SAR 0.37 in the first three months (3M) of 2025, compared to SAR 0.63 in the same period a year earlier. On a quarterly basis, the company swung to losses in Q1-25 against net profits of SAR 6.24 million in October-December 2024, while the revenues dropped by 19.23% from SAR 867.56 million. Accumulated Losses Red Sea International reported accumulated losses worth SAR 294.52 million as of 31 March 2025. The amount was equivalent to 97.40% of its SAR 302.34 million capital, and was also higher than the SAR 283.30 million that accounted for 93.70% of the capital as of 31 December 2024. In 2024, Red Sea International shifted to profitability at SAR 4.06 million versus net losses valued at SAR 23.13 million in 2023. Furthermore, the revenues soared by 116.49% to SAR 2.98 billion as of 31 December 2024 from SAR 1.37 billion a year earlier. The loss per share amounted to SAR 2.06 last year, compared to SAR 1.59 in 2023.
Argaam
15-05-2025
- Business
- Argaam
Raydan's accumulated losses reach 53.74% of capital
Raydan Food Co. announced that its accumulated losses amounted to 53.74% of capital as of March 31, 2025. In a statement to Tadawul, the company pointed out that the accumulated losses amounted to approximately SAR 84.95 million. The increase in accumulated losses was attributed to a decline in sales and a reduction in revenue from contracts and franchise operations, as well as an increase in selling and marketing expenses, impairment losses on right-of-use assets and land (classified under property and equipment), as well as foreign currency translation losses. The company also incurred losses from the revaluation of its investment in an associate company and recorded its share of that company's losses. Furthermore, the cost of revenue increased during the period. To address the situation, Raydan outlined a number of measures it intends to implement. These include restructuring its service and operational segments, increasing sales at existing branches by diversifying menu offerings and focusing on delivery services through a comprehensive marketing plan, and enhancing revenues from its catering segment by entering into long-term strategic agreements. The company also plans to reduce operating costs by consolidating its warehouses, slaughterhouses, and central kitchen. It aims to expand geographically into currently unserved areas through new catering contracts and branch openings, and restructure its franchise model with a focus on expansion outside Saudi Arabia. Raydan stated that its board of directors will disclose its recommendations regarding the accumulated losses on July 13, 2025. An extraordinary general meeting will be called by no later than November 10, 2025, to vote on whether to continue the company's operations. The company confirmed it will comply with the procedures and regulations set for listed companies whose accumulated losses exceed 20% of capital, and that the board has recommended taking all necessary actions in accordance with the laws applicable to companies with losses exceeding 50%. These include ensuring transparency, disclosure, and the protection of shareholder rights and interests. Raydan also noted that the above dates are in line with Article 132 of the Companies Law, which requires that if a joint-stock company's losses reach 50% of its paid-up capital, the board must disclose this and announce its recommendations within 60 days of becoming aware. An extraordinary general assembly must then be held within 180 days to decide whether to continue operations or dissolve the company.
Argaam
11-05-2025
- Business
- Argaam
Gulf General's accumulated losses reach 54.04% of capital
Gulf General Cooperative Insurance Co. announced that its accumulated losses amounted to 54.04% of capital as of March 31, 2025. The accumulated losses attributable to the company's shareholders increased to SAR 162.12 million as of March 31, 2025. This was due to higher insurance service expenses, a decrease in investment income results, and elevated operating expenses, according to a Tadawul filing today, May 11. The company also stressed its commitment to exerting utmost efforts in implementing the board-approved corrective plan to address its financial position and solvency margin, while trimming general and administrative expenses. This is besides efforts to curtail losses in the individual motor insurance segment while also developing sales through digital channels in a bid to improve cost efficiency. The deadline for the board of directors to publish recommendations for addressing Gulf General's accumulated losses is July 5. The board also has until Nov. 2 to issue the EGM invitation to consider the company's continuation. Procedures and regulations applicable on Saudi-listed companies with their accumulated losses reaching 20% or more of capital will apply, it added. The management is committed to comply with the relevant laws and regulations with regard to companies whose losses exceed 50% of the capital in terms of disclosure and preservation of shareholders' rights and interests. The above dates are set according to the provisions of Article (132) of the Companies Law.
