Leaf cuts contract value with Red Sea Global by over 40%

Leaf Global implements change order on Red Sea Global contract

Leaf Global Environmental Services Co. cut the value of a previously disclosed contract with Red Sea Global (RSG) by more than 40%.

In a statement to the Tadawul, the company said the contract initially covered the planting of two million mangrove trees, but its scope has been revised to include the planting of one million mangrove trees only.

The company added that there is no change in costs, as certain contract items were reduced. These items were scheduled for execution in 2026, and no costs had been incurred in relation to them.

As a result of the reduction, Leaf Global said it will not recognize the full revenues previously announced, noting that the financial impact will be reflected across both halves of 2026. The company added that it will disclose any material developments in due course.

In April 21, Leaf Global signed a contract with RSG for a program to plant two million mangrove trees in the Red Sea region in 2025. The contract value represented more than 45% of the company’s revenues for the previous year, Argaam data showed.