ZAIN Saudi said its first quarter loss narrowed by 21 percent from a year earlier due to lower operating costs. An affiliate of Kuwait's Zain, Zain Saudi posted a loss of SR420 million ($112 million) in the three months to March 31, compared with a loss of SR532 million in the year-earlier period. Total profit was SR702 million, down from SR716 million in the corresponding period of 2011 while the operational loss for the first quarter was SR191 million, down from SR233 million, the statement said. “The main reasons behind the narrowing of losses for the first quarter is the decline in operational costs by SR7 million,” it said. Meanwhile, Zain Saudi said it was finalizing the refinancing of a $2.6 billion facility due in July after it posted another quarterly loss. Thefacility will be replaced by another with a five-year term as the operator looks to bolster its balance sheet, with current liabilities now worth more than its assets, according to a statement to the Saudi bourse. Zain Saudi has proposed cutting its share capital by about 66 percent.
