Skip to content Skip to Search
Skip navigation

Saudi Cable financial woes laid bare in delayed results

In its latest filing to the Tadawul, Saudi Cable said it was facing a 'liquidity issue' Reuters/Faisal Al Nasser
In its latest filing to the Tadawul, Saudi Cable said it was facing a 'liquidity issue'
  • $156m net loss for 2022
  • Company’s future in doubt
  • Scramble for rescue plan

Saudi Cable Company has revealed the crisis it is facing after the manufacturer belatedly published its financial results for 2022.

The company, which owns manufacturing facilities in Saudi Arabia, Bahrain and Turkey, posted a net loss of SAR585 million ($156 million) for the year, a 200 percent increase compared with 2021.

Saudi Cable said in a filing on the Saudi Stock Exchange that its accumulated losses of SAR543 million as of the end of last year represented more than 800 percent of the company’s share capital, rocketing from 71 percent a year earlier.

Liabilities exceeded its assets by SAR974.5 million as at December 31, 2022 and official auditors said they “cast a significant doubt” about the company’s ability to continue as a going concern and to meet its obligations.

The company has called a virtual meeting with shareholders on Thursday where they can question CEO Nael Fayez about the 2022 results.

Management at Saudi Cable are scrambling to put together a financial restructuring proposal. Originally due to be presented to the courts on Monday, the company last month requested a six-month extension to the deadline.

In a ruling in June, the deadline was set by the Fifth Appeal Chamber of the Commercial Court in Riyadh.

In its latest filing to the Saudi Tadawul, Saudi Cable said it was facing a “liquidity issue” as a result of judicial enforcement orders filed against it by creditors and lenders.

It added that the company was unable to use its bank accounts and was unable to execute orders.

Management has prepared a five-year plan which forecasts net profit from 2025.

This includes assumptions in respect of a cash injection via a rights issue, revenue growth based on pipeline orders, and creditors voting in January to convert part of debt to equity as part of the financial restructuring procedure. 

“These elements are future events and hence contain material uncertainty as to the outcome,” the auditor noted.

The auditor also revealed that the company has recorded a contingent liability amounting to SAR52.5 million in relation to a court ruling in Turkey where it operates a subsidiary company.

Last week, Saudi Cable announced the signing of a working capital financing agreement with Rawafid Al-Mustaqbal Investment Company amounting to SAR140 million.

The company said the agreement includes cash financing and the purchase of raw materials to fulfill existing manufacturing orders. 

Saudi Cable Company, which was established in 1976 and was converted into a joint stock company in 1988 with a paid up capital of SAR270 million, has yet to publish results for 2023.

Latest articles

FILE PHOTO: United Arab Emirates Minister of State for Foreign Trade Thani Al Zeyoudi gestures during an interview with Reuters in Dubai, United Arab Emirates, June 30, 2022. REUTERS/Abdel Hadi Ramahi/File Photo

UAE and Kenya complete Cepa negotiations

The UAE and Kenya have completed negotiations on a comprehensive economic partnership agreement (Cepa) between the two countries. It is the 12th Cepa deal secured by the UAE and its third in Africa, after agreements were signed last year with Mauritius and the Republic of the Congo (Congo-Brazzaville). “The UAE-Kenya Cepa will not only boost […]

Adnoc has bid for German polymer manufacturer Covestro but its offers €55 and €57 per share were rejected

Adnoc faces hurdles in completing ambitious European deals

Abu Dhabi state oil company Adnoc is facing challenges to a duo of major European deals it is trying to get over the finish line, according to media reports. Talks with Austrian energy group OMV have been put on hold to allow parties to navigate a series of disagreements, the Financial Times reported on Friday. […]

The 450 companies operating at Dubai Science Park include AstraZeneca, and the free zone plans to add 200,000 sq ft of lab and office space

Dubai Science Park reveals expansion plans

Dubai’s biotechnology free zone is adding 60 percent more offices, laboratories and warehouses over the next few years to cater for an influx of new companies, its senior vice-president told AGBI.  Dubai Science Park, part of Dubai-listed Tecom Group, is planning an expansion of 200,000 sq ft of additional storage and logistics facilities at the […]

A worker at a phosphate production plant in Metlaoui, Tunisia. Phosphate accounts for 15% of Tunisia's exports

Saudi Arabia loans $55m for Tunisian rail renewal

Saudi Arabia has signed a $55 million loan deal with Tunisia to finance the renewal of the North African country’s rail network.  The railway is used to transport phosphate, a sector that makes up around 4 percent of Tunisia’s GDP and 15 percent of the country’s exports. Tunisia plans to produce eight million tonnes by […]