Petro Rabigh Tumbles to Four-Year Low After Loss: Riyadh Mover
Rabigh Refining & Petrochemicals Co. (PETROR) plunged to the lowest level in more than four years after posting its biggest quarterly loss since 2009 and saying results in the current period could also be hurt by maintenance work.
The shares slumped 9.9 percent to 16.45 riyals, the lowest level since March 2009, at 2:13 p.m. in Riyadh as trading volumes were more than three times the three-month daily average. The stock was the biggest decliner on Saudi Arabia’s benchmark Tadawul All Share Index, which gained 0.3 percent.
Petro Rabigh, as the company is known, had a first-quarter loss of 658.1 million riyals ($175 million) after a profit a year earlier as power outages and scheduled maintenance reduced sales. That was the biggest loss since the three months ending September 2009. The venture between Saudi Arabian Oil Co. and Sumitomo Chemical Co. (4005) said maintenance work, starting today and lasting until May 3, is also “expected to have an impact” on second-quarter results.
“The outlook for the year does not look very promising given the company has announced another shutdown,” Muhammad Faisal Potrik, an analyst at Riyad Capital, said in an e-mailed response to questions. First-quarter results were “disappointing” and Riyad Capital is in the process of lowering its rating on the stock, he said.
Petro Rabigh shares have declined 6.3 percent this year, compared with an increase of 4.7 percent for the Tadawul.
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