With reference to this announcement regarding Petro Rabigh financial results for the three-month period ended 31 March 2025, Petro Rabigh would like to announce the increase in its accumulated losses from 33.84% of its share capital of Saudi Riyals 16,710 million (“Share Capital”) as at 28 February 2025 to 35.72% of its Share Capital as at 31 March 2025 (02/10/1446H).

Date of accumulated losses increase: 31 March 2025 (02/10/1446H).

Amount of accumulated losses: SAR 5,969 million.

Percentage of the Accumulated Losses out of the Capital: 35.72% of Share Capital

Reasons for Accumulated Losses:

The primary causes of these accumulated losses include unfavorable market conditions leading to lower margins on both refined and petrochemical products, higher finance costs due to prolonged higher interest rates, the planned shutdown of the phase II units of the Petro Rabigh complex, unplanned shutdowns of the high olefins fluid catalytic cracker (HOFCC) and ethane cracker units for necessary repairs and maintenance, and the increased cost of feedstocks, including ethane, fuel oil, and sales gas during 2024 and 2025 and increase in freight cost due to shipping disruptions in the Red Sea.

Remedial Plan to Address Accumulated Losses:

On 7 August 2024, Saudi Aramco and Sumitomo Chemical (the “Founding Shareholders”) announced a Sale and Purchase Agreement whereby Saudi Aramco will acquire 375,974,998 shares from Sumitomo Chemical, representing approximately 22.5% of the Company's share capital. Upon completion of the transaction (which is subject to customary closing conditions), Saudi Aramco will own approximately 60%, Sumitomo will own 15%, and the public will own 25% of the Company's Share Capital.

In connection with the transaction, the Founding Shareholders have agreed to a number of measures intended to improve the Company's financial position, facilitate its turnaround strategy, and remediate its accumulated losses, including: (i) waiving shareholder loans (RSL) of SAR 5,625 million (USD 1,500 million) to the Company; (ii) injecting approximately SAR 5,263.6 million (USD 1,404 million) into the Company through a mechanisms to be agreed with the Company [refer to the Company’s announcement on 07 August 2024G (03/02/1446H)].

Following the announcement, On August 28, 2024, and January 28, 2025, respectively, the Company signed Amended and Restated RSL Agreements, waving SAR 5,625 million (USD 1,500 million) RSLs and related commissions. The Company has also appointed financial and Legal advisors to obtain the endorsement of the Regulators and prepare documentation for the increase mechanism, requiring approval from the Regulators and the Company's extraordinary general assembly meeting of the shareholders.

Additionally, the Company has started a Transformation Program where several value-added initiatives were introduced with the objective of reducing the Company’s operational costs and increase its revenue.

The above remedial plans to address the Company’s accumulated losses demonstrate the ongoing support given by the Founding Shareholders to improve the Company’s financial position and facilitate its turnaround strategy.

These disclosures are made in accordance with the procedures and instructions applicable on companies listed on the Saudi Stock Exchange who’s accumulated losses reach 20% or more of their share capital.