Nama Chemicals says COVID-19 financial impact at SAR 7 mln by end of Q2 2020

The net financial impact of COVID-19 pandemic on Nama Chemicals Co.’s business amounted to SAR 7 million until the end of the second quarter of 2020, according to a bourse filing.

The company expects a SAR 23 million financial impact on its businesses due to the COVID-19 pandemic in the second half of 2020, the statement noted.

The precautionary measures impacted production due to the reduction of staff, lower production, as well as disruption of transport and shipping of some of the essential materials required for operational and scheduled maintenance works.

In addition, there was a decrease in demand for the company's products in local and international markets. This, in turn, led to a decline in prices of the main products by an average of 10%.

The company's management is continuing its efforts since the beginning of the crisis to ensure the continuity of business and maintain its obligations with suppliers and customers by supplying basic materials for production, the statement noted.

Nama Chemicals widened net losses after Zakat and tax by over three times year-on-year (YoY) to SAR 10.7 million in H1 2020.