In 2019, PetroRabigh faced scrutiny for discrepancies in financial reporting, resulting in a significant loss of shareholder trust. Such issues underscore the importance of having robust whistleblowing frameworks in place to encourage reporting of financial irregularities.
Next generation whistleblowing platform
PetroRabigh, officially known as Rabigh Refining & Petrochemical Company, is a major player in Saudi Arabia’s petrochemical industry. Founded in 2005 as a joint venture between Saudi Aramco and Japan’s Sumitomo Chemical, the company has experienced both significant growth and challenges:
Company Overview
- Established in 2005 and headquartered in Rabigh, Saudi Arabia
- Produces and markets refined hydrocarbons and petrochemicals
- Listed on the Saudi Stock Exchange (Tadawul) in 2008
- Current market capitalization of SAR 16.71 billion
Strategic Importance
PetroRabigh plays a crucial role in Saudi Arabia’s petrochemical sector:
- First producer of many petrochemical products in the Middle East
- Only producer of propylene oxide in the region
- Contributes to Saudi Arabia’s economic diversification efforts
Production Capacity
The company’s facilities are substantial:
- Original production capacity of 18.4 million tons per annum of petroleum-based products
- 4 million tons per annum of ethylene and propylene-based derivatives
- Expanded capacity with PetroRabigh II project, valued at $9 billion
Recent Developments
As of January 2025, PetroRabigh is undergoing significant changes:
- Aramco is set to become the majority shareholder, increasing its stake to approximately 60%
- Sumitomo Chemical will reduce its stake to 15%
- This change aims to improve PetroRabigh’s financial position and facilitate a turnaround strategy
Financial Performance
PetroRabigh has faced financial challenges:
- Stock price volatility reflects ongoing financial difficulties
- The company has been working on restructuring efforts to improve its position
Management and Governance
- Current CEO is Othman Ali Al-Ghamdi, appointed in January 2021
- The company has experienced leadership changes in recent years
PetroRabigh’s case highlights the complexities of managing large-scale petrochemical operations in a changing global market. Its strategic importance to Saudi Arabia’s economy and the recent restructuring efforts underscore the challenges and opportunities in the sector
