Arabian Pipes uses statutory reserve to offset accumulated losses in full

Logo of Arabian Pipes Co.

Arabian Pipes Co. (APC) announced using part of its statutory reserve to fully offset its SAR 39.9 million accumulated losses, which represented 39.9% of capital.

Accordingly, the accumulated losses fell to 0% as of Feb. 28, 2022, the company said in a bourse statement.

The company’s shareholders had approved a capital cut to offset losses during the extraordinary general assembly meeting (EGM). Meanwhile, the board of directors decided to use part of the statutory deposit to offset the remaining losses.

In February, Arabian Pipes Co.'s shareholders approved reducing the company's capital by 75%, from SAR 400 million to SAR 100 million, to restructure capital in order to offset accumulated losses, during the EGM, Argaam reported.