Clay Pipes Co. Loss Widens 303% in Nine Months

Riyadh, Saudi Arabia — Saudi Vitrified Clay Pipes Co. reported a staggering 302.6% increase in net loss for the nine months ending 30 September 2026, reaching 38.45 million SAR. The decline was driven by a one-time 8.05 million SAR expense related to machinery, higher credit loss provisions, and the absence of last year's asset-sale gains.

As a result, accumulated losses now stand at 118.26 million SAR, accounting for 78.84% of share capital, and auditors have issued a material uncertainty warning about the company's continued operations. In Q3 alone, the company posted a 23.3% reduction in net loss, narrowing from 19.29 million SAR in Q2 2026 to 14.8 million SAR.

Revenue increased by 28.5% quarter-on-quarter to 15.61 million SAR, as project execution accelerated and sales volumes rose. However, revenue for the nine months fell 3.1% year-on-year to 43.22 million SAR, impacted by lower demand and project slowdowns. The external auditor issued an unmodified opinion but included an emphasis on the company's ability to continue as a going concern, highlighting current liabilities surpassing current assets by 38.92 million SAR and accumulated losses exceeding 50% of share capital.

The company acted by approving a share capital reduction from 150 million SAR to 45.43 million SAR and recommending a rights issue to replenish capital for a diversification strategy.