Saudi Cable CEO says capital increase file 'on right track'

Khalid Khashogji, CEO and Managing Director of Saudi Cable Co.

Khalid Khashogji, CEO and Managing Director of Saudi Cable Co., said revenue growth is driven by rising demand and the scale of ongoing projects in Saudi Arabia. This prompted the company to enhance its customer base to keep up with the momentum of the local economy, Khashogji told Argaam.

The group's net profit increased from SAR 18 million to SAR 48.8 million in 2024.

The CEO explained that the company's share in the profit of its associate, Midal, rose from SAR 73.9 million to SAR 127.2 million, marking a 90% growth. This is reflects the associate's improved performance.

He added that the company recorded a net profit of SAR 66.27 million from continuing operations, while it incurred a net loss of SAR 17.5 million from discontinued business, bringing the overall net profit to SAR 48.8 million, with earnings per share reaching SAR 7.31.

The group’s accumulated losses decreased from SAR 525.5 million to SAR 476.7 million, which reflects the beginning of a gradual recovery as the cable producer returns to profitability and sustains continued business.

Regarding the capital increase file, Khashogji said it is currently under review by the financial advisor, Albilad Capital, for final adjustments in collaboration with the company’s financial management.

He noted that work on this file began over five months ago. Given that the company is currently undergoing financial restructuring, all necessary legal approvals have been secured.

Although the file faced several challenges due to the company’s exceptional circumstances and legal restrictions, it is now on the right track, Khashogji added.

He further explained that, regarding the company’s status in the financial restructuring process, the newly appointed financial trustee received all documents from the previous one. However, reviewing and verifying the documents took some time.

The company is now working with the trustee to audit and review the list of claims to ensure the rights of both the company and creditors are protected optimally, aligning with regulatory procedures and ensuring fairness for shareholders and creditors.

The company is committed to maintaining and strengthening its competitiveness in the cable manufacturing sector, in line with Saudi Arabia’s economic direction.

Regarding the court ruling to overturn the previous decision that cancels the claim list, Khashogji clarified that the decision annulled the submission process carried out by the former trustee, Walid bin Mohammed Subhi, and the overturn of the court ruling issued on March 13, 2024.
 
The judge ruled to cancel the claim list registered under request No. 131, submitted by Walid Subhi in bankruptcy case No. 103 for the year 2024. Additionally, Khalid bin Abdulaziz Hawsawi was appointed as the new trustee, with his responsibilities, powers, and duties defined under the Bankruptcy Law and its regulations.

The CEO emphasized that the company is now working closely with the new trustee to review the creditor list to ensure compliance with legal and regulatory frameworks. According to Argaam data, Saudi Cable posted a net profit of SAR 48.8 million for 2024, with Q4 net earnings reaching SAR 5.8 million.