Riyadh – Mubasher: Al Battal Factory for Chemical Industries has announced a significant development regarding its insurance claim following a fire at its Dammam facility in July 2025, according to a bourse filing.
The company received formal notification from its insurer on 15 June 2026, approving an additional payment on account totaling SAR 8 million. This latest installment follows a previous advance payment and brings the company closer to recovering the full assessed value of the damages incurred during the industrial incident.
The disclosure serves as a follow-up to a series of announcements regarding a limited fire that occurred on 4 July 2025 at one of the company’s manufacturing units located in Dammam.
Following the incident, Al Battal Factory initiated a comprehensive insurance claim process to mitigate the financial impact of the property damage and operational disruptions.
In a previous update shared with the market on 25 January 2026, the company confirmed that a loss adjuster had finalized the evaluation of the claim. The total compensation entitlement was assessed at SAR 21.82 million.
At that stage of the recovery process, the company had already secured an initial advance payment of SAR 6 million, which left an outstanding balance of SAR 15.82 millino based on the adjuster's valuation.
The recent approval of an additional SAR 8 million represents a substantial portion of the remaining claim. Once this payment is successfully processed and received by the company, the outstanding balance of the total assessed compensation will be reduced to SAR 7.82 million.
Regarding the financial implications of this development, Al Battal Factory stated that the exact impact on its fiscal position cannot be determined at this precise moment.
The company clarified that the financial effects will be officially recognized and disclosed once the funds are actually received.
At that point, the proceeds will be reflected in the company’s financial statements in accordance with approved accounting standards.
The company also utilized the disclosure to reiterate its commitment to operational safety. Management emphasized that Al Battal Factory remains dedicated to applying the highest standards of risk management and safety protocols across its facilities.
These measures are intended to ensure operational sustainability and to protect the long-term interests of the company’s shareholders.
The successful progression of this insurance claim marks a critical step in the company's efforts to finalize the recovery process from the 2025 incident.
By securing these payments on account, Al Battal Factory maintains its liquidity while moving toward a full settlement of the assessed damages. The company has pledged to keep the market and its investors informed of any further developments regarding the final disbursement of the remaining insurance balance.
