Argaam Research: 10 Tadawul-listed firms accumulated losses over 50% of capital

A new study conducted by Argaam Research revealed that Tadawul-listed companies reported higher accumulated losses in the first four months of 2015, which exceeded 50 percent of their capital.

The figures also show that seven firms widened their losses during the period.

Sanad Insurance and Salama Cooperative Insurance narrowed losses when compared to 2014, which accounted for 81 percent and 71 percent of their capital, respectively.

Al-Baha’s accumulated losses were unchanged at 124 percent of its capital, after reporting a marginal net profit of SAR 2.43 billion for the first quarter.

The firms mentioned above managed to swing to profit. The two insurers were bolstered by higher net premiums written and lower net claims incurred. Al-Baha’s earnings were mainly driven by low depreciation expenses.

Argaam earlier reported that Saudi Arabia’s market regulator, the Capital Market Authority (CMA), had set certain disclosure requirements on companies whose accumulated losses reached 50 percent or more of their capital. These companies are required to publish their unaudited financial statements, no later than ten days after the end of every month.