Riyadh — Mubasher: The board of Saudi Vitrified Clay Pipes Company (SVCP) has unanimously decided to suspend the disbursement of remuneration for board and committee members for 2025 and 2026.
The decision, effective 19 October 2026, also includes the temporary suspension of the Managing Director’s salary, which the company noted has been effectively halted since October 2025.
The company attributed these measures to current financial challenges and liquidity pressures resulting from delayed collections from several clients.
These delays are linked to a slowdown in project activity and spending, impacting the firm's ability to meet financial obligations on schedule.
The suspension is a temporary measure aimed at preserving available cash and supporting the stability of the company’s financial position.
Management intends to redirect resources toward priority operational and financial commitments. The board will periodically review the decision based on improvements in cash flow and debt collection rates.
Payments will only resume once the financial situation improves and sufficient liquidity becomes available, subject to future board evaluation and regulatory compliance.
The board recently approved the appointment of the Chairman and members of the audit committee for a new four-year session.
