Dar Almarkabah accumulated losses reach 44.11% of capital

A combination of operational and financing factors led to losses in the previous and current financial periods, resulting in accumulated losses, Dar Almarkabah said in a statement to Tadawul today, Aug. 31.

Key factors included a decline in revenue, primarily due to a 29.1% drop in government-sector revenue following a decline in low-margin government contracts, as well as a 10.7% decrease in private-sector revenue amid intense market competition.

The company continued to bear the cost of renting vehicles from third parties, which is included in cost of revenue, as it still partially relies on leased vehicles as part of its operating fleet. However, the company continues to lower this dependence as part of its strategy to restructure the fleet and increase owned vehicles.

The results were also affected by financing costs (FCs) related to interest on long-term loans and finance lease liabilities, as well as losses from the sale and disposal of vehicles under its fleet renewal program.

These losses resulted from the carrying value of the disposed vehicles exceeding the proceeds generated from their sale.

The relatively high general, administrative, and operating expenses (OpEx) compared with the revenue generated also contributed to the accumulated losses reaching the reported level, despite efforts to rationalize these expenses and improve operational efficiency.

Regarding measures to address the losses, the company said it continues to implement its cost-rationalization and operational-efficiency program and review the general, administrative, and operating expenses to better align them with the scale of its operations and revenue.

The company is also implementing its fleet restructuring plan by gradually reducing its reliance on vehicles leased from third parties, increasing the proportion of owned vehicles, maximizing utilization of its operating fleet, and reviewing its vehicle renewal and sale process to limit losses on disposal.

The company added that it is also working to optimize its financing structure and manage its financing obligations, while focusing on contracts and customers offering stronger profit margins and cash flows, which would support improvements in profitability, cash flows, and its financial position.

Dar Almarkabah confirmed that its board of directors will continue to monitor the implementation of these measures and assess their impact on financial results, while disclosing any material developments in accordance with the applicable laws, regulations, and instructions.

The company noted that accumulated losses stood at SAR 6.62 million as of Dec. 31, 2025, representing 26.48% of capital. After adding the net loss of SAR 4.41 million for the period ended June 30, 2026, accumulated losses reached SAR 11.03 million, equivalent to 44.11% of the company’s capital.

The company said the net loss for the current period improved by 17.98% year-on-year (YoY), mainly due to a 33.2% decline in general and administrative expenses and a 32.9% decrease in FCs, despite the continued impact of operational factors.