Signal · Geopolitical Risk

‎Saudi Fisheries: From dividends to two decades of losses

Argaam - Main News Trade press Published 26th September 2026 Saudi Arabia

What the source reported

Source-reported

‎<img src="https://argaamplus.s3.amazonaws.com/23b2c369-cb18-4795-859b-13f6c4e11644.png" > Saudi Fisheries has recorded annual losses for two decades while repeatedly restructuring its capital and ownership. <hr> <a href="https://www.argaam.com/en/tadawul/tasi/sfico" target="_blank">Saudi Fisheries Co.</a> has gone through more than 20 years of annual losses and restructuring measures, including multiple capital increases and reductions at different stages to address accumulated losses. However, this trajectory did not span the company’s entire history, as it reported profits in earlier periods, including in 2000, and had previously paid cash dividends to shareholders. Dividend records show that the company paid SAR 5 per share in 1996, followed by SAR 3 per share in 2002, confirming that its history included periods of cash distributions to shareholders. <table align="center" border="1" cellpadding="0" cellspacing="0" width="100%"> <tbody> <tr > <td colspan="5" > Dividend Distributions </td> </tr> <tr > <td > Announcement Date </td> <td > Record Date </td> <td > Distribution Date </td> <td > Distribution Method </td> <td > Dividend per Share (SAR) </td> </tr> <tr > <td > June 25, 1996 </td> <td > June 19, 1996 </td> <td > July 30, 1996 </td> <td > By mail </td> <td > 5 </td> </tr> <tr > <td > April 22, 2002 </td> <td > May 5, 2002 </td> <td > June 1, 2002 </td> <td > Bank transfer </td> <td > 3 </td> </tr> </tbody> </table> <div > Saudi Fisheries was established by royal decree in March 1981 and listed on the Saudi Exchange in April 2001. It operates in aquaculture, fish production and marketing. In contrast, available data for 2005–2025 show that the company recorded net losses in every year during the period, with significant fluctuations in revenue from one year to another. During the first half of 2026, the company recorded no revenue in either the first or second quarter. <table align="center" border="1" cellpadding="0" cellspacing="0" > <tbody> <tr > <td colspan="3" > H1 2026 Results (SAR mln) </td> </tr> <tr > <td > Item </td> <td > Q2 2026 </td> <td > Q1 2026 </td> </tr> <tr > <td > Revenue </td> <td > 0 </td> <td > 0 </td> </tr> <tr > <td > Operating income </td> <td > (2.63) </td> <td > (1.73) </td> </tr> <tr > <td > Net income </td> <td > (3.17) </td> <td > (1.04) </td> </tr> </tbody> </table> <div ></div> The company attributed the lack of revenue during the period to the suspension of retail and wholesale sales activities as part of a review of its operating strategy and business restructuring, with a focus on activities offering higher economic viability and reducing financial burdens. The company said it is completing the requirements for the sale of a 51% stake in Al-Hareedha National Aquaculture Co. to Sara National Co. for SAR 33.15 million, including the transfer of the project’s lease agreement, licenses and related assets. It also announced that accumulated losses had reached SAR 20.9 million, or 31.2% of capital, by the end of the current period. Hussein Al-Raqeeb, Director of Zad Consulting Center, said the company’s main challenge is not related to the fish sector itself as much as it is to its business model, operating efficiency and management. He noted that Saudi Arabia’s aquaculture sector is growing and receiving government support, with production reaching about 217,000 tons, while investment opportunities in the sector are estimated at around SAR 7 billion. The Kingdom aims to raise production to 600,000 tons by 2030, indicating that the company’s difficulties cannot be explained by the sector’s performance alone. Al-Raqeeb added that despite its growth opportunities, the sector remains highly sensitive to costs and operating efficiency, particularly feed, fingerlings, energy and operating costs, as well as mortality rates, diseases, transportation and storage. The profitability of aquaculture projects depends heavily on production volumes, mortality rates, feed conversion efficiency and selling prices, making any deterioration in these factors directly affect profit margins. He noted that Saudi Fisheries had previously attributed part of its losses to fixed costs associated with idle or underutilized farms, impairment of assets and inventory, declining wholesale activity and the closure of several retail stores — factors more closely related to the company’s operating performance than to the sector as a whole. Capital Between Loss Write-Offs and New Funding Accumulated losses have prompted the company to make repeated changes to its capital over the years, alternating between capital reductions to write off losses and increases through rights issues to strengthen its financial position and fund operations. Since 2006, the company has implemented six major capital changes, comprising three rights issues and three capital reductions. It is planning another increase, the fourth of its kind, subject to shareholder approval. <table align="center" border="1" cellpadding="0" cellspacing="0" width="100%"> <tbody> <tr > <td colspan="7" > Historical Changes in Saudi Fisheries’ Capital </td> </tr> <tr > <td rowspan="2" > Period </td> <td rowspan="2" > Action </td> <td colspan="2" > Before Change </td> <td colspan="2" > After Change </td> <td rowspan="2" > Change Rate </td> </tr> <tr > <td > Capital (SAR mln) </td> <td > Shares (mln) </td> <td > Capital (SAR mln) </td> <td > Shares (mln) </td> </tr> <tr > <td > May 2006 </td> <td > Rights issue </td> <td > 100.00 </td> <td > 10.00 </td> <td > 200.00 </td> <td > 20.00 </td> <td > 100.00% </td> </tr> <tr > <td > October 2011 </td> <td > Rights issue </td> <td > 200.00 </td> <td > 20.00 </td> <td > 535.38 </td> <td > 53.54 </td> <td > 167.69% </td> </tr> <tr > <td > April 2017 </td> <td > Reduction </td> <td > 535.37 </td> <td > 53.54 </td> <td > 200.00 </td> <td > 20.00 </td> <td > (62.64%) </td> </tr> <tr > <td > December 2018 </td> <td > Reduction </td> <td > 200.00 </td> <td > 20.00 </td> <td > 101.10 </td> <td > 10.11 </td> <td > (49.45%) </td> </tr> <tr > <td > February 2020 </td> <td > Rights issue </td> <td > 101.10 </td> <td > 10.11 </td> <td > 400.00 </td> <td > 40.00 </td> <td > 295.65% </td> </tr> <tr > <td > January 2025 </td> <td > Reduction </td> <td > 400.00 </td> <td > 40.00 </td> <td > 66.99 </td> <td > 6.70 </td> <td > (83.25%) </td> </tr> </tbody> </table> <div ></div> Al-Raqee said the problem is clear in the numbers. In January 2025, the company reduced its capital from SAR 400 million to about SAR 67 million to write off more than SAR 333 million in accumulated losses. Accumulated losses then reached 31.2% of capital by the end of June 2026. At the same time, there is a plan to increase capital by about SAR 335 million. He added that when capital increases are repeatedly followed by losses that consume capital and then by reductions to write off those losses, the issue is no longer a funding problem but rather a business model that has not demonstrated its ability to generate returns on capital. According to Argaam data, the company’s board of directors recommended in February 2025 increasing capital through a rights issue worth SAR 334.93 million, raising capital from SAR 66.99 million to SAR 401.92 million, to support the company’s strategic plans and future activities. The Capital Market Authority (CMA) approved the company’s capital increase request in April 2026, while the company invited shareholders to vote on the increase at the third extraordinary general meeting (EGM) scheduled for Sept. 27, 2026. The third meeting was called after the required quorum was not met at the first and second meetings scheduled for Sept. 2. Attendance stood at 13.67% at the first meeting and 14.10% at the second. The third meeting will be held with shareholders present, in accordance with the applicable laws and regulations. <table align="center" border="1" cellpadding="0" cellspacing="0" width="100%"> <tbody> <tr > <td colspan="2" > Capital Increase Details </td> </tr> <tr > <td > Current capital </td> <td > SAR 66.99 mln </td> </tr> <tr > <td > No. of shares </td> <td > 6.70 mln </td> </tr> <tr > <td > Capital after increase </td> <td > SAR 401.92 mln </td> </tr> <tr > <td > No. of shares after increase </td> <td > 40.19 mln </td> </tr> <tr > <td > Increase percentage </td> <td > 500% </td> </tr> <tr > <td > Nominal value </td> <td > SAR 10 </td> </tr> <tr > <td > Purpose </td> <td > Enable the company to implement its strategic plans and support future activities </td> </tr> </tbody> </table> <div ></div> Al-Raqeeb believes the company needs to move from capital restructuring to restructuring the business itself, noting that injecting new funds will not be sufficient if the current operating structure continues to consume them. The restructuring should include identifying activities and farms capable of generating positive operating margins, closing or selling unproductive assets, establishing clear production costs and profitability per kilogram, and linking any future expansion to specific operating and financial indicators rather than simply the availability of funding. He stressed the importance of greater discipline in capital allocation so that hundreds of millions of riyals are not injected before the business demonstrates its ability to generate cash flows. “The key indicator is not the size of the upcoming capital increase, but how many riyals in profits and cash flows the company will generate from every new riyal invested by shareholders,” Al-Raqeeb said. From PIF to SALIC, Then Al-Humaid: Changes in Ownership of the 40% Stake Alongside the repeated capital changes, the company’s ownership structure has undergone significant changes in recent years, most notably the transfer of a 40% stake among several major shareholders. <table align="center" border="1" cellpadding="0" cellspacing="0" width="100%"> <tbody> <tr > <td colspan="5" > Historical Changes in Major Shareholdings </td> </tr> <tr > <td > Date </td> <td > Shareholder </td> <td > Previous Stake </td> <td > Current Stake </td> <td > Change </td> </tr> <tr > <td > January 2018 </td> <td > Prince Mutaib bin Abdulaziz Al Saud </td> <td > 21.49% </td> <td > 0.00% </td> <td > (21.49%) </td> </tr> <tr > <td > January 2018 </td> <td > Ouj Investment Co. </td> <td > 0.00% </td> <td > 21.49% </td> <td > +21.49% </td> </tr> <tr > <td > September 2018 </td> <td > Ouj Investment Co. </td> <td > 21.49% </td> <td > 8.95% </td> <td > (12.54%) </td> </tr> <tr > <td > September 2018 </td> <td > Ouj Investment Co. </td> <td > 8.95% </td> <td > 0.00% </td> <td > (8.95%) </td> </tr> <tr > <td > April 2020 </td> <td > Amina Ibrahim Al-Rumaih </td> <td > 4.69% </td> <td > 5.36% </td> <td > +0.67% </td> </tr> <tr > <td > April 2020 </td> <td > Amina Ibrahim Al-Rumaih </td> <td > 5.36% </td> <td > 5.39% </td> <td > +0.03% </td> </tr> <tr > <td > June 2020 </td> <td > Amina Ibrahim Al-Rumaih </td> <td > 5.39% </td> <td > 0.00% </td> <td > (5.39%) </td> </tr> <tr > <td > March 2021 </td> <td > PIF </td> <td > 39.99% </td> <td > 0.00% </td> <td > (39.99%) </td> </tr> <tr > <td > March 2021 </td> <td > SALIC </td> <td > 0.00% </td> <td > 39.99% </td> <td > +39.99% </td> </tr> </tbody> </table> <div ></div> The Public Investment Fund (PIF) held a 39.99% stake in the company before the stake was subsequently transferred to Saudi Agricultural and Livestock Investment Co. (SALIC) in March 2021, as part of the restructuring of the fund’s investments in the agriculture and food sectors. In August 2024, SALIC agreed to sell its entire 39.99% stake, equivalent to about 16 million shares, to Abdulaziz Abdullah Al-Humaid for SAR 122.38 million. The transaction price was about SAR 7.65 per share, compared with a market price of SAR 22.02 at the close of trading on Aug. 15, 2024, meaning the transaction was completed at a price approximately 65% below the stock’s market price at the time. The ownership transfer was completed in September 2024, with Al-Humaid’s stake reaching 39.99%, before declining during the same month to 33.23% and then 25%. On Sept. 15, 2024, Al-Humaid, who became chairman of the company, undertook to retain a 25% stake in the company and not dispose of it through a sale or transfer for one year. <table border="1" cellpadding="0" cellspacing="0" width="100%"> <tbody> <tr > <td colspan="4" > Changes in Al-Humaid’s Stake in Saudi Fisheries </td> </tr> <tr > <td > Date </td> <td > Previous Stake </td> <td > New Stake </td> <td > Change </td> </tr> <tr > <td > Aug. 29, 2024 </td> <td > 0.00% </td> <td > 39.99% </td> <td > +39.99% </td> </tr> <tr > <td > Sept. 11, 2024 </td> <td > 39.99% </td> <td > 33.23% </td> <td > (6.76%) </td> </tr> <tr > <td > Sept. 12, 2024 </td> <td > 33.23% </td> <td > 25.00% </td> <td > (8.23%) </td> </tr> <tr > <td > Dec. 1, 2025 </td> <td > 25.00% </td> <td > 20.07% </td> <td > (4.93%) </td> </tr> <tr > <td > Feb. 23, 2026 </td> <td > 20.07% </td> <td > 15.15% </td> <td > (4.92%) </td> </tr> <tr > <td > March 12, 2026 </td> <td > 15.15% </td> <td > 10.22% </td> <td > (4.93%) </td> </tr> </tbody> </table> The commitment period ended in September 2025, after which his stake subsequently declined to 20.07% in December 2025, then to 15.15% in February 2026, and finally to 10.22% in March 2026. Regarding the company’s future, Al-Raqeeb said aquaculture could theoretically generate sustainable profits if operated at an appropriate scale and with high operating efficiency, while controlling costs and maintaining stable sales channels. He said Saudi Fisheries should focus on building an integrated value chain, starting with aquaculture and extending to processing, packaging and value-added products, followed by distribution, exports and long-term supply contracts, allowing the company to generate margins at multiple stages. Regarding the company’s expansion into other activities, including dates following the establishment of National Dates Co., Al-Raqeeb said diversification by itself does not guarantee profitability. He added that failing to address operating efficiency and capital allocation challenges could simply shift the problem from one business to another. “The real question is not fish or dates, but whether the company has a proven business model and an operating management team capable of converting capital into sustainable cash flows and profits. That is the real test for any new plan by the company.” </div>

Publication: Argaam - Main News · Trade Publication
Published: 26th September 2026
Original report: argaam.com

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What ProcIntel recorded

ProcIntel-derived

Category: Geopolitical Risk
Geography: Saudi Arabia
Organisations: None identified
Collected: 26th September 2026 · 11:43

Initial assessment ProcIntel's automatic, provisional read of this individual Signal -- Initial Significance and Initial Confidence, computed deterministically before any Event extraction or human review.

A provisional, automatically computed reading of this individual Signal, before Event extraction or human review. Not a final rating.

Significance 2 · Moderate

Confidence 2 · Low

Initial Significance Moderate (22.0/100). Strongest contributor: Entity Criticality (8.0/20 points). Limiting factor: Geographic Breadth (0.0/10 points). Initial Confidence Low (27.5/100, data sufficiency: Partial). Strongest contributor: Source Authority (20.0/40 points). Limiting factor: Corroboration (2.5/25 points).

Strongest contributor: Entity Criticality
Limiting factor: Geographic Breadth

What the source reported

What ProcIntel recorded

Initial assessment ⓘMore about Initial Signal AssessmentProcIntel's automatic, provisional read of this individual Signal -- Initial Significance and Initial Confidence, computed deterministically before any Event extraction or human review.

Initial assessment ProcIntel's automatic, provisional read of this individual Signal -- Initial Significance and Initial Confidence, computed deterministically before any Event extraction or human review.