Saudi Cable eyes capital increase to boost production, says chairman

Saudi Cable Company manufactures energy and telecommunications cable systems. (File)

• Production has declined due to difficulties obtaining financing

RIYADH: Saudi Cable Company has submitted a request to increase capital as it seeks to raise funds to invest in production, Chairman Meyassar Nowailati said today.
Production has declined, not due to a lack of contracts, but because of difficulties obtaining financing, he told Al Arabiya.
The company needs to restore the confidence of banks following challenges arising from the coronavirus, said Nowailati. “The company’s capital needs are very large,” he said.
The company has extended the maturity of some of its short-term debt and it has no issues with solvency, Nowailti said.
“The company’s debts reached SR1.7 billion ($453 million) in the past, but now the only debt listed in the company’s figures is around SR250 million, while the rest has been paid,” he said.
The Saudi Cable Company posted a net loss of SR55 million in 2020, compared to a net loss of SR61.8 million in the previous year. Revenue decreased by more than 3 percent last year to SR368 million.