Methanol Chemicals Co. announces its Interim Financial results for the Period Ending on 2026-03-31 ( Three Months )

Methanol Chemicals Co. reported a net loss of SAR 46.36 million for the first quarter of 2026, a 3.8% increase in losses compared to the SAR 44.66 million loss in the same period last year. Revenue for the quarter fell by 24.7% year-over-year to SAR 124.74 million, down from SAR 165.59 million.
The top-line decline was primarily driven by a 23% drop in sales volumes due to regional supply chain and logistical challenges; the company rerouted international shipments through alternative corridors to maintain supply continuity for its export business, which accounts for 67% of total annual sales.
Accumulated losses reached SAR 597.7 million as of March 31, 2026, representing 88.6% of the company's capital, primarily due to negative impacts from past acquisitions and subsidiary losses of SAR 9.3 million during the current quarter.
External auditors issued an emphasis of matter regarding material uncertainty about the group's ability to continue as a going concern, noting that current liabilities exceed current assets by SAR 355.9 million; in response, shareholders have approved a capital reduction to SAR 150 million to address the accumulated deficit.

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	124.74	165.59	-24.669	144.13	-13.453
Gross Profit (Loss)	2.2	13.14	-83.257	-12.92	-
Operational Profit (Loss)	-38.09	-32.54	17.055	35.81	-
Net Profit (Loss) Attributable to Shareholders of the Issuer	-46.36	-44.66	3.806	30.43	-
Total Comprehensive Income Attributable to Shareholders of the Issuer	-46.36	-44.66	3.806	32.89	-
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Total Shareholders Equity (after Deducting Minority Equity)	238.85	724.04	-67.011
Profit (Loss) per Share	-0.69	-0.66
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	-	-
Accumulated Losses	597.67	88.6
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is	The reason for the decrease in revenue of 25% during the current quarter compared to the same quarter of last year is mainly due to a drop in selling quantities by 23%, largely due to regional supply chain and logistical challenges. To maintain supply continuity, particularly given that the Company's international sales account for approximately 67% of its total annual sales, the Parent Company successfully rerouted shipments through alternative trade corridors, helping to minimize the financial impact.
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	The reason for the increase in losses by 4% during the current quarter compared to the loss in the same quarter of last year is due to the decrease in quantities by 23%. Losses incurred by the subsidiaries accounted for 20% (SAR 9.3 million) of the total losses during the current quarter, even without any depreciation and amortization expense, as all fixed assets were fully impaired in Q2 of the previous year. Despite a 25% decrease in revenue, total losses increased by only 4%, managed largely through cost-optimization measures implemented to mitigate the top-line impact. Additionally, overall results were impacted by regional market challenges, which affected key shipping routes and their costs. To maintain supply continuity, the Parent Company successfully rerouted shipments through alternative trade corridors, helping minimize the financial impact.
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is	The reason for the decrease in revenue of 13% during the current quarter compared to the previous quarter is mainly due to a decrease in selling quantities by 21%. This was largely attributable to the challenges and difficulties experienced across regional supply chain and logistics.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is	The reason for the loss during the current quarter compared to previous quarter is due to decrease in selling quantities by 21%. As a result of the challenges and difficulties experienced by regional supply chain and logistics. Furthermore, the reversal of provision of SR 94.5 million, which was recognized in Q2 2025 and reversed in Q4 2025. This provision was recognized against receivables from subsidiaries relating to working capital support and feedstock supply. Subsidiaries contributed 20% (SR 9.3 Mn) to total losses during this quarter, even without any depreciation and amortization expense, as all fixed assets were fully impaired in Q2 of last year. Additionally, overall results were impacted by regional market volatility, which affected key shipping routes and their cost. To maintain supply continuity, the Parent Company successfully rerouted shipments through alternative trade corridors, helping minimize the financial impact.
Statement of the type of external auditor's report	Unmodified conclusion
Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion)	Emphasis of Matter: We draw attention to Note 3 in the interim condensed consolidated financial statements, which indicates that the Group has incurred a net loss of SR 48.3 million for the three-month period ended 31 March 2026. As at that date, the Group’s current liabilities exceeded its current assets by SR 355.9 million and the Group’s accumulated losses exceeded half of its share capital. In addition, the Group is involved in legal proceedings as described in Note 3. These events or conditions, along with other matters as described in Note 3, indicate that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern. Management’s plans in respect of these matters, including the planned rights issue and other mitigating measures, are also disclosed in Note 3. The interim condensed consolidated financial statements have been prepared on a going concerning basis. Our conclusion is not modified in respect of this matter.
Reclassification of Comparison Items	Certain corresponding figures have been restated where considered necessary for better presentation. Please refer to Note 18 for details of the restatement of comparative amounts.
Additional Information	In conjunction with the announcement of the financial results for the period Q1 2026, the Parent Company would like to announce that accumulated losses as of 31 March 2026 amounted to SR 597.7 million, representing 88.6% of the Company's capital. The majority of these losses have resulted from the negative impact of the acquisitions. The Extraordinary General Assembly was held on July 14, 2026, at which the Company's shareholders approved the reduction of the Company's share capital to SAR 150,000,000, in addition to the utilization of SAR 53.4 million from the statutory reserve to cover the remaining balance of accumulated losses as of 30 September 2025 and this was approved by shareholders. The Parent Company is in the process of completing the remaining statutory formalities with the governmental authorities. It is worth noting that the procedures and instructions for listed companies with accumulated losses of 20% or more of their capital will be applied.