Al Battal Factory outlines measures to address accumulated losses

Logo of Al Battal Factory for Chemical Industries Co.

Al Battal Factory for Chemical Industries Co.’s board of directors outlined some measures to address accumulated losses that reached 74.29% of the company’s capital.

In a statement on Tadawul, the company said the board approved a plan to address accumulated losses, which will gradually improve its financial performance and enable it to reduce accumulated losses by collecting the remaining insurance compensation due under the loss adjuster’s report and restructuring shareholders’ equity.

The company added that it recommended that the extraordinary general meeting (EGM) approve the transfer of SAR 10 million from the share premium account, as recorded in the H1 2026 income statement, to accumulated losses to partially offset such losses.

It also recommended that the EGM approve the continuation of business operations and activities after its losses exceeded half of its capital, in accordance with Article 132 of the Companies Law, given the improvement in its 2026 performance so far.

The company said it will take the necessary steps to present these recommendations to the upcoming EGM for a vote, subject to shareholders’ approval.

It noted that it is completing the regulatory requirements related to the EGM agenda items and will announce the meeting invitation once these requirements are fulfilled.

The company reaffirmed its full commitment to applying the highest standards of risk management, while continuing its efforts to strengthen operational sustainability and safeguard shareholders’ interests

Any future developments in this regard will be duly announced, it added.

According to Argaam data, Al Battal Factory announced in August that its accumulated losses had reached SAR 24.78 million, representing 74.29% of its SAR 33.35 million capital.