Nama Chemicals trims losses to SAR 29.3M in 9M 2024; Q3 at SAR 48.1M

Nama Chemicals Co. narrowed its net loss to SAR 29.3 million in the first nine months of 2024 from SAR 95 million a year earlier. 

The major reason for decrease in net loss is reversal of impairment on plant, machinery and equipment.

The period’s performance was driven by lower cost of sales due to the decrease in sold quantities, higher selling and distribution expenses due to increase in freight cost in spite of lower sales volume and higher general and admin expenses due to increase in SAP licensing fees and audit fee.

There was an increase in finance cost is due to adoption of IFRS 9 for effective interest rate on SIDF loans.

Similarly, the increase in other income is due to amortization of government grant as per IFRS 9.

Meanwhile, the company reported a decrease in product sales quantities, in addition to the decrease in the average selling prices of final products due to global economic conditions and their impact on the decline in demand.

The chemical producer’s net loss shrank to SAR 48.1 million in Q3 2024 from SAR 49.9 million a year ago.

Sequentially, the company turned to losses against a profit of SAR 52.94 million from Q2 2024.

Shareholders’ equity, with no minority interest, reached SAR 200.27 million by the end of 9M 2024, from SAR 290.9 million in the year-earlier period.

Accumulated losses stood at SAR 35.3 million as of Sept. 30, 2024, representing 13.93% of capital.

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