Al Battal Factory says accumulated losses reach 66.15% of capital

In a statement to Tadawul, the company said the losses were mainly driven by a decline in sales, which negatively impacted revenues. The lower sales resulted from lower offtake from its key customer, Saudi Aramco, compared with projected levels during 2025.

The financial results were significantly affected by losses amounting to SAR 16.63 million, resulting from a fire incident at one of the factory’s facilities on July 4, 2025. The incident led to a partial suspension of operations, reduced production capacity, and the loss of part of the inventory.

The company added that net results were further impacted by higher financing expenses and the continuation of certain fixed operating costs despite lower activity levels.

Al Battal said it is implementing a plan to address the accumulated losses, including rehabilitating and restarting production lines affected by the fire, enhancing operational efficiency, and gradually boosting production capacity.

The company is also working to rationalize costs, improve expense management, and continue insurance claim procedures to secure the remaining compensation, which is expected to support its financial position.

In addition, it aims to boost sales by improving demand management with its main customer and diversifying its customer base, supporting revenue stability and improving financial performance in the coming periods.

The deadline for the board of directors to disclose its recommendations regarding the accumulated losses is May 30, while the deadline for calling an extraordinary general meeting (EGM) to consider the company’s continuation is Sept. 27.

The company will apply the procedures and instructions for listed companies with accumulated losses of 50% or more of their capital, in accordance with the companies law, the regulations of the Capital Market Authority (CMA), and the CMA’s instructions for listed companies on Tadawul, the statement added.