Amiantit’s accumulated losses stand at 22.26% of capital in Q1

Saudi Arabian Amiantit Co. reported SAR 257.2 million in accumulated losses, accounting for 22.26 percent of its capital amounting to SAR 1.16 billion as of Mar. 31, 2018, the company said in a statement to Tadawul on Thursday. 

These losses were mainly attributed to a continuous slowdown in infrastructure projects across the Kingdom in 2016 and 2017.

The company also incurred significant costs related to the restructuring of one of its associates in Europe, after merging its pipeline operations and technology with a European partner (Hobas), and the establishment of a new joint venture, of which the group holds a 50 percent stake.

Amiantit is currently working on activating its plans to reduce accumulated losses, by reducing optional administrative and operational costs, diversifying income sources, restructuring the group’s loans, and increasing production efficiency, as well as business improvement.

The Saudi company will be subject to the market regulator’s rules governing listed companies with accumulated losses of at least 20 percent of capital.