Nama Chemicals turns to SAR 18.8M profit in H1 2024; Q2 at SAR 52.9M

This was propelled by impairment reversal on the plant, machinery and equipment, and a decline in the cost of sales on lower sales volumes. The company also cited lower selling and distribution expenses on a slump in sales volumes. Further, general and administrative expenses dropped on lower provision for doubtful debt, while the finance cost increased upon the adoption of IFRS 9.

The company reported a net profit of SAR 52.9 million for Q2 2024, versus a net loss of SAR 26.3 million in Q2 2023.

The profit was spurred by the reversal of impairment on the plants, machinery and equipment. In addition, the company reported lower cost of sales due to a decline in sales volumes. The company also cited lower provisions for doubtful debt, which decreased general and administrative expenses.

Nama Chemicals reported an increase in finance costs due to the adoption of IFRS 9 for the effective interest rate on the loans obtained from the Saudi Industrial Development Fund.

On a quarterly basis, Nama Chemicals turned a profit in Q2 2024, from a net loss of SAR 29.7 million in Q1 2024.

Total shareholders’ equity, after minority interest, fell to SAR 248.38 million by June 30, 2024, compared to SAR 340.75 million a year ago.