The accumulated losses of 51 listed firms rose to SR13.8 billion, recording a rise of 33.9 percent in 2013 compared to SR10.3 billion in 2012.
A financial report compiled and analyzed by Al-Eqtesadiah daily said the telecom sector accounted for 35 percent of the total losses at SR4.9 billion, followed by the construction and insurance sectors at 19 percent each, petrochemical sector 12 percent and other sectors accounting for the remaining 15 percent.
In terms of number of firms sector-wise, the insurance sector topped the list with 29 firms suffering losses, or 57 percent of the total firms. Only six firms didn’t report losses, the report added.
Bisha, Baha and Moijil companies reported highest accumulated losses with losses exceeding their capital by more than 100 percent, the report said.
The volume of accumulated losses in Bisha touched SR63 million in 2013, or 126 percent of its capital of SR50 million, Baha had SR182 million in losses (121 percent of capital) while Moijil has accumulated losses of SR2.4 billion (100 percent of its capital), the report said.
It may be recalled that the Saudi Capital Market Authority (CMA) normally suspends trading of a company’s shares if its accumulated losses exceed 75 percent of the company’s capital.
Accumulated losses in five insurance companies were over 60 percent of their capital in 2013. They include Ahliah with accumulated losses of SR74 million (74 percent of capital), Wafa with SR73 million losses (73 percent), Arabia with SR137 million losses (68 percent), Sanad with SR135 million losses (68 percent), and Weqaya with SR134 million (67 percent), the report said.
Three other companies have accumulated losses ranging from 50 percent to 60 percent of their capital. They are Al-Rajhi Takaful with SR114 million (57 percent of capital), Etihad Atheeb Telecom Company (GO) with SR85 million losses (54 percent), and Thimar with SR51 million losses (51 percent of its capital), the report said.
The telecom sector was accounted for a major portion of accumulated losses in terms of value at SR4.9 billion in 2013, or 35 percent of total losses. The two telecom firms, GO and Zain KSA, had SR4 billion in losses, or 37 percent of their combined capital totaling SR10.8 billion, the report added.