Naqi Water inks contract to purchase SAR 3.1M biological assets

Logo of Naqi Water Co.

Naqi Water Co. today signed a contract with Al-Bayad Farms Company Limited to purchase biological assets (white pullets) of the Hisex breed, totaling 720,000 white pullets, at a value of SAR 3.096 million.

This forms part of the implementation phases of the Poultry Sector Project and completes the expansion plan, which includes adding two new production poultry houses to increase the project's production capacity by 50%, according to a statement to Tadawul.

The company will also implement a flock replacement and renewal plan for the four existing poultry houses according to their production cycles, supporting operational efficiency, production sustainability, and the achievement of operational and strategic objectives.

The contract is financed internally by the company, without the need for any external financing.

The transaction comes as part of the company's plan to complete the expansion of the poultry sector and to provide the flocks required to operate the new poultry houses, in addition to implementing a periodic plan to replace and renew the existing flocks according to their ages and production rates. This contributes to maintaining production efficiency and the continuity of operations, and to achieving the company's objectives in the poultry sector, according to the statement.

Naqi Water also stated that the transaction is expected to support the utilization of the production capacity of the six poultry houses and to enhance the efficiency of operations and productivity in the poultry sector, in line with the company's expansion plans.

It noted that the financial impact is expected to appear during the second half of 2027. There are no related parties involved in the contract.