Al Battal Factory unveils board recommendations to offset accumulated losses

Logo of Al Battal Factory for Chemical Industries Co.

Al Battal Factory for Chemical Industries Co. said its board has issued recommendations regarding accumulated losses, which reached 66.15% of the company’s capital.

In a statement to Tadawul, the company’s board approved a recovery plan aimed at gradually improving financial performance and enabling it to address losses over the coming period through a set of measures, including enhancing operational performance and boosting sales.

The plan also includes collecting outstanding insurance compensation in line with the loss adjuster’s report, reoperating and rehabilitating the factory, and evaluating the addition of new products.

Additional measures involve cost optimization and efficiency improvements.

Moreover, the board recommended that the extraordinary general meeting (EGM) approve the company’s continuation of operations despite losses exceeding 50% of capital, in accordance with Article 132 of the Companies Law, citing improved performance in 2026.

The company said it will take the necessary steps to present the recommendation to the upcoming EGM for a shareholder vote, noting that it remains subject to approval, and will disclose further developments as they arise.

Al Battal Factory added that it is currently completing the regulatory requirements related to the meeting agenda and will announce the EGM invitation once those requirements are finalized.

According to data, accumulated losses stood at SAR 22.06 million, representing 66.15% of the company’s SAR 33.35 million capital, based on financial statements for the year ended Dec. 31, 2025.

The company attributed the losses mainly to lower sales due to reduced offtake from its main client, Saudi Aramco, compared with projected levels in 2025, which weighed on revenues.