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2380

Governance: A

PETRO RABIGH

Rabigh Refining and Petrochemical Co.

15.97 SAR / Share

As of: May 28, 2026

— P/E Ratio Trailing 12 Months

1.8x P/B Ratio Price to Book Value

— Dividend Yield Annual Dividend / Share

26.69B SAR Market Cap Total Valuation

1.34 Beta Systematic Risk Index

-4.5% Net Margin Net Profit / Revenue

The Story

A capital-intensive energy giant struggling with structural losses and high leverage, currently reliant on shareholder support and capital restructuring to stabilize its balance sheet.

Source: Q1 2026 (2026-04-30)

Value Creation -10.3% Excess Return on Capital (Spread between ROIC/ROE and Cost of Capital)

Cash Flow Payback — Estimated years of operating cash flows required to cover Enterprise Value

Performance & Distributions

Dividend Yield Trailing annual dividends paid relative to share price

—

Sustainable Growth Rate Rate at which company can grow internally using reinvested profits

+0.9%

Payout Ratio Percent of net profits distributed as dividends

—

Net Margin Net profit margin generated from total operational revenue

-4.5%

ROIC Return on Invested Capital

-2.3%

Market Pricing Multiples

P/E Ratio Market value compared to corporate net earnings

—

P/B Ratio Market capitalization compared to corporate book value

1.8x

EV / EBITDA Operating multiple reflecting core operational leverage

17.7x

EV / SALES Asset pricing multiple relative to total topline revenue

1.3x

Growth Story

The company's revenue trajectory has faced significant headwinds, contracting from 44.6 billion SAR in fiscal 2023 to 35.01 billion SAR in fiscal 2025. While TTM revenue shows a slight recovery to 38.64 billion SAR, the long-term growth capacity remains constrained. A negative five-year average reinvestment rate of -40.0% indicates that the company has been shrinking its capital base rather than expanding it. With a sustainable growth rate of only 0.93%, the business model is currently focused on operational stabilization and cost-cutting rather than aggressive top-line expansion, as it navigates volatile global energy markets.

Profitability Dynamics

Petro Rabigh is currently in a value-destructive phase, with a five-year average ROIC of -2.32% falling significantly short of its 9.60% WACC. This negative gap of nearly 12% underscores the difficulty the company faces in generating returns from its massive asset base. Profitability remains under pressure, evidenced by a TTM operating margin of -0.91% and a TTM net loss of 1.74 billion SAR. Although early 2026 data suggests a temporary swing toward comprehensive income due to improved market conditions and crude oil price dynamics, the historical trend reflects consistent challenges in achieving positive NOPAT and sustainable cash flow generation.

Risk & Capital Structure

Beta Systematic market risk indicator relative to the TASI index

1.34

Cost of Equity Minimum required rate of return demanded by shareholders

10.2%

WACC Weighted average cost of total debt and equity funding

7.9%

Debt-to-Equity Ratio Proportion of corporate funding financed by debt creditors

92.5%

Risk Factors

The risk profile is dominated by high leverage and liquidity constraints, reflected in a high re-levered beta of 2.60. Total debt stands at 24.68 billion SAR, and the company reported a negative working capital position of 10.76 billion SAR. To address accumulated losses, shareholders approved a 5.26 billion SAR capital reduction in March 2026. Beyond financial leverage, the company faces legal risks, including a long-standing 365.7 million SAR dispute with the Saudi Electricity Company. While the support of founding shareholders like Saudi Aramco provides a safety net through adjusted payment terms and loan waivers, the underlying business remains highly sensitive to geopolitical disruptions and commodity price cycles.

Governance Disclosures

Rating: A

We track 15 key governance and oversight matters for this company in our database.

Significance: 4/10 Info Asymmetry

Revision of Asset Useful Lives

Management revised the estimated useful lives of plant and machinery from a maximum of 40 years to 55 years. This accounting estimate change reduced depreciation expense and increased net income by SAR 70.3 million for the quarter.

Mitigating Factors: The revision was based on an independent technical assessment and advice from the company's technical teams.

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In-Depth Analysis