Saudi refiner and petchems firm Petro Rabigh announced to the Tadawul exchange on 1 October that it has secured three loans worth a total SR7.5bn ($2.0bn). The company announced an SR1.875bn ($500mn) facility agreement and an SR2.8125bn ($750mn) revolving loan agreement with state firm Aramco and an SR2.8125bn ($750mn) shareholder revolving loan agreement with Japan’s Sumitomo Chemical. Aramco and Sumitomo both own 37.5% of Petro Rabigh, with the remaining 25% of shares traded on the Tadawul. The three loans, each with a three-year term from December 2020, will fund “general corporate and working capital purposes.”

Petro Rabigh’s loans come after three quarterly losses: SR887mn ($236mn) in 4Q19; a quarterly record SR1.797bn ($479mn) in 1Q20 because of a 30-day scheduled shutdown of all its plants from 1 March (MEES, 8 May); and SR1.435bn (£383mn) in 2Q20. While Aramco’s $1.25bn of loans to Petro Rabigh equate to only 19% of Aramco’s 2Q20 profits of $6.57bn, they are insignificant compared with the petroleum giant’s $75bn dividend commitment to government this year (MEES, 14 August). (CONTINUED - 175 WORDS)