Riyadh – Mubasher: Methanol Chemicals Company (Chemanol) incurred a net loss of SAR 46.36 million during the first quarter (Q1) that ended on 31 March 2026.
The losses represented a 3.81% increase compared to the SAR 44.66 million net loss recorded during Q1-25, according to the income statements.
Loss per share for the period stood at SAR 0.69.
Revenue fell by 24.67% to SAR 124.74 million in January-March 2026 from SAR 165.59 million in the same quarter a year earlier.
The company attributed the decline primarily to a 23% drop in sales volumes caused by regional supply chain and logistics challenges.
Despite these headwinds, the company mitigated some financial impact by rerouting shipments through alternative trade corridors, noting that international sales account for approximately 67% of annual turnover.
Chemanol stated that its accumulated losses reached SAR 597.67 million as of 31 March 2026, representing 88.60% of its capital.
The company highlighted material uncertainty regarding the group's ability to continue as a going concern, as current liabilities exceeded current assets by SAR 355.90 million.
To address the financial position, an extraordinary general assembly (EGM) on 14 July 2026 approved a capital reduction to SAR 150 million and the use of SAR 53.40 million from statutory reserves to offset losses.
In 2025, Chemanol posted higher net loss attributable to shareholders at SAR 479.66 million, while the accumulated losses hit SAR 551.30 million as of 31 December 2025.
