Saudi Arabia’s financial regulator, Capital Market Authority, suspended the trading of operator Mobily’s shares on the country’s stock exchange, following a revision of the company’s 2014 financial results
According to Mobily’s audited results, it posted a SAR 913 million ($243 million) loss instead of a net profit of SAR 220 million, that was previously announced.
The company also admitted it had breached covenants on long-term loans with various lenders, causing the loans to be reclassified as current liabilities, which were SAR 15.3 billion at end-2014, Reuters reported.
The authority said it will “look into continuing the suspension” once Mobily, an affiliate of Etisalat, discloses the “reasons in details behind the net loss” as well as “any other related material developments”.
The company also said it had accepted the resignation of CEO Khalid Omar Al Kaf who had been suspended last year after errors were found in the company’s accounting, leading it to restate figures for 2013 and the first nine months of 2014.
Mobily had cut its 2013 profit by $197 million and its first-half 2014 profit was reduced by around $183 million, causing Saudi Arabia’s market regulators to launch an investigation into the matter.
Serkan Okandan, who replaced Al Kaf, has a mandate to run the company until the end of March, by which time the board and shareholders have said they will decide the best way forward.