Arabian Pipes recommends SAR 71 mln reserves transfer to offset losses

Arabian Pipes Co.’s board of directors recommended offsetting accumulated losses by transferring SAR 70.8 million from the company’s reserves.

A total of SAR 39.4 million will be transferred from statutory reserve, with the remaining SAR 31.4 million from general reserve, according to the company’s annual earnings statement.

The board proposal is subject to the approval of the upcoming general assembly meeting.

Arabian Pipes’ accumulated losses stood at SAR 91.8 million as of Dec. 31, 2018, or 22.95 percent of its SAR 400 million capital.

The increased losses were attributed to higher global prices of raw materials, inventory write-off, allocation of provisions and completion of stalled projects, the statement added.

The pipe manufacturer will take the procedures required by the Capital Market Authority (CMA), as its accumulated losses exceeded 20 percent of capital.