Red Sea International says accumulated losses increase to 57% of capital

Logo of Red Sea International Co.

Red Sea International Co. announced that its accumulated loss increased to SAR 172.46 million, or 57.04 % of capital, as of Dec. 31, 2022, the company said in a statement to Tadawul today, May 10.

The increase was driven by absorbing the non-cash losses (asset impairment and provisions) from the international operations, mainly in Ghana and Malaysia, in addition to lower revenue and higher general and administrative expenses (G&As).

Measures related to the Saudi-listed companies whose accumulated losses reached more than 20% of capital will be applied.

The board of directors recommended implementing the required procedures, while complying with the relevant laws and regulations regarding companies whose losses exceeded 50% of the capital.

According to the revised Company Law's Article 132, the board of directors shall, within 60 days from the date of its knowledge, announce the losses and their recommendations if losses of a joint-stock company reach half of the issued capital.

In addition, they will call for an extraordinary general assembly meeting within 180 days of being notified to consider the company’s continuation by taking necessary measures to resolve such losses or seek dissolution.