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Kimusingal Q2 2026 Losses Drop 89.5%
Methanol Chemicals Company "Kimareyl" announced its financial results for the second quarter of 2026. The company’s net losses decreased by 89.5% compared to the same period of the previous year, amounting to 35.25 million SAR instead of 337.03 million SAR. However, the company still faces accumulated losses estimated at 632.9 million SAR (approximately 94% of its capital), raising concerns about its ability to continue as a going concern. Revenue declined by 1.6% to 147.6 million SAR due to a decrease in sales volumes caused by logistical challenges, but a 42% increase in average selling prices helped reduce losses. On a semi-annual basis, the company saw a significant improvement in its losses, recording a loss of 81.6 million SAR compared to 381.7 million SAR in the previous year, after impairing assets worth 279.3 million SAR. The company faces operational and financial challenges, including rising gas prices and shipping costs. It has announced efforts to reduce dependency on international markets and shifted approximately 67% of its sales to alternative trading channels to enhance business continuity. The company's financial position is under considerable pressure, with current liabilities exceeding current assets by 370.1 million SAR, and legal actions affecting its ongoing viability. In an attempt to address these issues, the Extraordinary General Assembly approved in July 2026 a capital reduction to 150 million SAR and the use of part of its reserves to cover accumulated losses. The company's management continues to work toward completing the necessary procedures with relevant authorities.
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