After initiating restructuring plans, dealing with personnel shifts, and sustaining several quarters in a row of mounting losses, Riyadh, Saudi Arabia-based Saudi Fisheries Company said it has now set its sights on full financial recovery.
The company said in a statement to the Saudi Stock Exchange it had accumulated losses of up to SAR 333 million (USD 88.7 million, EUR 81.8 million) as of 30 September 2024, which was equivalent to around 83 percent of the company’s share capital and an increase from the previous SAR 285 million (USD 75.8 million EUR 69.9 million) in losses the company reported as of 31 December 2023, or 71 percent of its share capital.
In the same September 2024 financial report, the company posted a 59 percent loss in revenue for the nine months ending 30 September, dropping to SAR 17.6 million (USD 4.7 million EUR 4.3 million) compared to SAR 42.7 million (USD 11.4 million EUR 10.5 million) for the same period in 2023, attributing the losses to a “decline in [its] wholesale and retail segments,” as well as “increased consultancy costs in addition to the previous period's gains from investment properties and other higher income sources.”
Its net losses widened to SAR 48.5 million (USD 12.9 million EUR 11.9 million) in the nine-month period, compared to SAR 47.1 million (USD 12.6 million EUR 11.6 million) for the same period the previous year.
However, the company said it has eradicated all of its losses through reducing its share capital by 83 percent from SAR 400 million (USD 106.6 million, EUR 98.3 million) to SAR 67 million (USD 17.8 million, EUR 16.5 million), as the firm embarked on internally reorganizing its financial structure to avert possible liquidation.
The company also reduced its shares from 40 million ordinary shares to 6.7 million shares as part of its plan to eliminate losses.
Additionally, in February 2025, the company commercially registered its aquaculture subsidiary, Al-Haridha Wataniyah, with an initial share capital of SAR 100,000 (USD 26,600, EUR 24,600).
The push to operationalize its new aquaculture company comes as Saudi Fisheries’ board of directors is aiming to soon grow its share capital again through a rights issue, which, if successful, would raise at least SAR 335 million (USD 89.2 million EUR 82.3 million) “to enable the company to implement its strategic plans and support future activities.”
The proposal, which is subject to the approval of regulatory authorities, would be the first capital-raising activity the company has carried out since it successfully eliminated its accumulated losses that have constrained issuing dividends to shareholders for more than a year.
Already, the company has appointed Wasatah Capital, a Saudi Arabia-based investment firm, to oversee this proposed capital increase.
