The Directors of the Company will prepare a remedial plan to address the accumulated losses situation and will announce this plan within 60 days of this announcement in accordance with the Companies Law and Capital Market Authority Regulations.

Date of Realization of Loss:

30 June 2024G corresponding to (24 Dhul Hijjah 1445H).

Date of Notifying the Board of Directors with the Accumulated Loss:

06 August 2024G corresponding to (02 Safar 1446H).

Major Reasons Leading to the Losses:

The accumulated losses are mainly attributable to the unfavorable market conditions which resulted in lower or negative margins of the refined and petrochemical products, higher finance cost due to increase in interest rates, planned shutdown of the phase II units of the Petro Rabigh complex, unplanned shutdown of high olefins fluid catalytic cracker unit and ethane cracker unit for necessary repairs & maintenance and increase in the cost of the feedstock including Ethane, Fuel Oil and Sales Gas effective January 2024 and increase in freight cost the shipping disruptions in the Red Sea.

Last day for board of directors to publish the recommendation for the Accumulated Losses:

05 October 2024G corresponding to (02 Rabi Thani 1446H).

Last day for board of directors to publish the EGM invitation to consider the company’s continuation:

02 February 2025G corresponding to (03 Shabaan 1446H).

Application of the Procedures and Instructions:

The procedures and instructions applicable to companies listed on the Saudi Stock Exchange whose Accumulated Losses reached 20% or more will be applied.

Reference to additional procedures or instructions:

The Board also recommended starting the required procedures and complying with the relevant laws and regulations with regard to companies whose losses exceeded 50% of the capital in terms of disclosure and preservation of shareholders' rights and interests.

The above dates are set according to Tadawul guidelines on dealing with companies whose shares are listed in the Exchange with accumulated losses reaching 20% or more of its capital; the CMA’s Procedures and Instructions related to listed companies with accumulated losses reaching 20% or more of their share capital (Resolution Number 8-5-2023), and the Companies Law Article 132, which is stated as:

If the losses of a joint-stock company amount to half of the issued capital, the board of directors shall, within 60 days from the date of its knowledge thereof, announce the losses and the recommendations relating thereto, and shall, within 180 days from said date, call for an extraordinary general assembly meeting to consider the continuation of the company by taking measures necessary to resolve such losses or the dissolution of the company.