Methanol Chemicals Company (2001) Q2 2025 earnings summary

Executive summary

• Reported a net loss of SR 529.3 million for the six months ended 30 June 2025, with accumulated losses exceeding half of capital and current liabilities surpassing current assets by SR 314.6 million.

• Material uncertainty exists regarding the ability to continue as a going concern, with plans for a rights issue in 2026 to address liquidity.

• Board has not yet convened an extraordinary general assembly as required by law to address solvency issues.

Financial highlights

• Revenue for H1 2025 was SR 320.3 million, down from SR 352.3 million year-over-year.

• Gross profit for H1 2025 was SR 16.7 million, a sharp decline from SR 46.4 million in H1 2024.

• Operating loss for H1 2025 reached SR 336.5 million, mainly due to a non-cash impairment loss.

• Net loss for H1 2025 was SR 529.3 million, compared to a net loss of SR 55.2 million in H1 2024.

• Basic and diluted loss per share for H1 2025 was SR 6.93, versus SR 0.78 in H1 2024.

Outlook and guidance

• Management is confident in completing a rights issue within 12 months to improve liquidity, but success depends on regulatory approvals and market conditions.

• Cost-reduction and operational efficiency measures have been implemented to optimize cash flows.