Rabigh Refining and Petrochemical Company SJSC

Rabigh Refining and Petrochemical Company SJSC exhibits a capital structure characterized by high leverage and constrained liquidity. The company reports total assets of 58.55 billion SAR against total liabilities of 45.52 billion SAR, resulting in total equity of 13.03 billion SAR. Long-term debt stands at 25.20 billion SAR, yielding a debt-to-equity ratio of 1.93. Liquidity is tight, with a current ratio of 0.4 and cash and equivalents of only 270.28 million SAR. The risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt. Operating cash flow is positive at 2.15 billion SAR, but free cash flow is negative at -4.52 billion SAR, driven by capital expenditures of 3.78 billion SAR.

Profitability metrics are deeply negative, reflecting significant operational losses. The company reports a net income loss of 3.90 billion SAR, resulting in a return on equity (ROE) of -29.7% and a return on assets (ROA) of -6.61%. Gross profit is negative at -1.76 billion SAR, and operating income is negative at -2.46 billion SAR. These figures indicate that the company is currently unable to cover its operating costs with its revenue, a situation exacerbated by the high fixed costs typical of integrated refining operations. The negative gross profit suggests that input costs or market pricing pressures are severely impacting the core refining margin.

Revenue concentration and segment details are not explicitly broken down in the provided data, but the company's activity is defined as Integrated Oil & Gas. The total revenue for the latest normalized period is 35.01 billion SAR. Without specific segment or geographic breakdowns, the analysis relies on the aggregate financial performance. The company's exposure to global oil and petrochemical price fluctuations is inherent to its industry classification, which likely drives the volatility seen in its gross and operating margins.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current financial snapshot shows a revenue base of 35.01 billion SAR, but without year-over-year or quarterly trend data, the direction of revenue growth cannot be quantified. The negative net income and operating cash flow dynamics suggest that the company is in a period of financial stress or cyclical downturn, rather than expansion. The lack of historical data prevents a detailed assessment of whether the current losses are a deviation from a long-term trend or part of a sustained decline.

Risk factors are prominent, with medium liquidity risk and low dilution risk identified. The key flag of negative net cash after debt subtraction highlights the company's reliance on external financing or asset sales to meet obligations. The high debt-to-equity ratio of 1.93 increases financial risk, particularly in a high-interest-rate environment or if commodity prices remain depressed. The negative free cash flow of -4.52 billion SAR further strains the balance sheet, as the company is consuming cash to maintain operations and fund capital expenditures.

Recent events and market sentiment are reflected in the IR observations. Analyst estimates show a mean, median, high, and low price target of 16.00 SAR, with a mean recommendation of 2.00 (Buy). There are two Buy ratings and no Strong Buy, Hold, or Sell ratings reported. This uniformity in price targets suggests a consensus view on the company's valuation, possibly based on asset value or recovery potential rather than current earnings. The competitor context lists Chevron, Shell, and BP, indicating the company operates in a global competitive landscape dominated by major integrated oil majors.

Analysts maintain a buy recommendation with a mean price target of 16.0 SAR, implying minimal upside from the current market price.

Long-term debt decreased to 25.2 billion SAR in FY2026, reflecting a reduction from 49.9 billion SAR in FY2022.

The company faces low dilution risk and low credit risk according to the assessed risk flags.

Net income deteriorated significantly, reaching a loss of 3.9 billion SAR in FY2026 compared to a profit in FY2022.

Return on equity stands at -29.7%, placing the company in the bottom quartile of its Integrated Oil & Gas cohort.

The debt-to-equity ratio of 1.93 is significantly higher than the cohort median of 0.49, indicating high leverage.

Revenue SAR 35.01B, −11,0% YoY; Operating income +4,4% YoY.

• ▍Revenue SAR 35.01B, −11,0% YoY
• ▍Operating income +4,4% YoY
• ▍Net income +14,2% YoY
• ▍Free cash flow −101,7% YoY
• ▍Net margin -11.1%

Revenue SAR 39.35B, −11,8% YoY; Operating income +1,2% YoY.

• ▍Revenue SAR 39.35B, −11,8% YoY
• ▍Operating income +1,2% YoY
• ▍Net income +3,2% YoY
• ▍Free cash flow +10,7% YoY
• ▍Net margin -11.5%

Revenue SAR 44.60B, −20,3% YoY; Operating income −21 386,8% YoY.

• ▍Revenue SAR 44.60B, −20,3% YoY
• ▍Operating income −21 386,8% YoY
• ▍Net income −320,9% YoY
• ▍Free cash flow −236,7% YoY
• ▍Net margin -10.5%

Revenue SAR 55.95B, +22,6% YoY; Operating income −99,6% YoY.

• ▍Revenue SAR 55.95B, +22,6% YoY
• ▍Operating income −99,6% YoY
• ▍Net income −154,7% YoY
• ▍Free cash flow −61,5% YoY
• ▍Net margin -2.0%

Revenue SAR 45.64B; Operating income SAR 3.19B.

• ▍Revenue SAR 45.64B
• ▍Operating income SAR 3.19B
• ▍Net margin 4.5%