Saudi Arabia’s Petro Rabigh swings to Q4 net loss on crude plunge

SINGAPORE (ICIS)–Rabigh Refining and Petrochemical Co (Petro Rabigh) posted a fourth-quarter net loss of Saudi riyal (SR) 198m ($53m), reversing a profit of SR1.24bn in the previous corresponding period, on inventory losses caused by steep declines in crude prices, the company said late on Tuesday.

However, the crack spread improved and partly offset the negative impacts from falling crude prices, the company said in a filing to the Saudi Stock Exchange or Tadawul.

Its gross profit for December 2014 quarter shrank to SR48m from SR715m, while it swung to an operating loss of SR181m from a profit of SR498m in the previous corresponding period.

For the whole of 2014, however, Petro Rabigh posted a 90% surge in net profit to SR681m, and recorded an operating profit of SR734m – a reversal of the SR313m loss in 2013.

The company attributed the higher earnings on a full-year basis to stable operations and improved crack spreads.

($1 = SR3.75)