Dar Almarkabah accumulated losses hit 26% of capital

Logo of Dar Almarkabah for Renting Cars Co.

Dar Almarkabah for Renting Cars Co. said its accumulated losses reached 26% of its SAR 25 million capital, based on annual financial statements for 2025.

In a statement on Tadawul, the company attributed the losses to the implementation of a restructuring plan during 2025, which included suspending several low-profit projects and contracts to improve operational efficiency over the medium and long term.

It added that revenue declined due to its strategic shift toward diversifying its customer base and reducing reliance on certain sectors, which temporarily weighed on business volumes. Operating costs also increased, including financing, insurance, and maintenance expenses, in addition to higher depreciation linked to fleet modernization.

The company recognized financial provisions for certain receivables and impairment in the value of some assets, in line with its accounting policies. Operating activity was also affected by temporary conditions that weighed on fleet utilization rates.

Dar Almarkabah said it will apply the procedures and instructions applicable to Saudi-listed companies whose accumulated losses reach 20% or more of capital.

The company added that management is currently implementing corrective measures, including improving operational efficiency and utilization rates, expanding into higher-margin sectors, and enhancing cost and liquidity management.

According to Argaam data, Dar Almarkabah’s losses widened to SAR 5.6 million by the end of 2025, compared with SAR 1.2 million in 2024. The company reported losses of SAR 270,000 in the fourth quarter.