Nama Chemicals incurs SAR 152.4M loss in 2023; Q4 at SAR 57.4M

Nama Chemicals Co. swung to a net loss of SAR 152.4 million in 2023 from a net profit of SAR 37 million a year earlier.

The losses were attributed to lower revenues by 23% year-on-year (YoY) as average selling prices fell due to the continued slowdown in the global economy on tighter monetary policies to confront inflation.

There was also an increase in the cost of sales, along with a rise in general and administrative expenses as a result of higher allowances for doubtful debts.

Zakat expense rose by SAR 12.14 million, representing the differences in final Zakat assessments and Zakat provision for the fiscal year 2015 to 2018. Bank expenses increased on a surge in bank facilities.

Meanwhile, sales volumes rose and shipping costs declined.

The chemical producer’s net loss widened to SAR 57.4 million in Q4 2023 from SAR 17.70 million a year ago.

Sequentially, the company’s net loss expanded from SAR 49.86 million from Q3 2023.

Shareholders’ equity, with no minority interest, reached SAR 233.92 million by the end of 2023, from SAR 285.97 million in the year-earlier period.

Accumulated losses amounted to SAR 1.50 billion as of Dec. 31, 2023, representing 0.64% of the company’s capital.

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