Riyadh, Saudi Arabia — Nama Chemicals Company disclosed that its accumulated losses had reached SAR 112 million by the end of June 2025, representing 47.62% of its SAR 235.2 million capital. The announcement was based on unaudited financial data for the first half of the year. It was shared through Tadawul on July 9.
Nama Chemicals Accumulated Losses Tied to Supply and Funding Issues
The company attributed the sharp rise in losses to delays in raw material supply and insufficient access to working capital. These challenges hampered production efficiency and strained day-to-day operations. Additionally, a scheduled maintenance shutdown in April 2025 further reduced output and revenue.
Nama has since resumed production gradually, and management anticipates operational improvements in the second half of 2025. However, the financial pressure underscores broader concerns about the sustainability of small-cap industrial firms in the current funding environment.
Corrective Actions and Regulatory Compliance
Nama’s executive management and board stated that they are actively implementing corrective measures to enhance operational efficiency and cut costs. These steps include process optimization and better procurement planning to limit future supply disruptions.
Because accumulated losses now exceed 20% of its capital, the company affirmed its compliance with Tadawul regulations for listed entities facing capital erosion. This includes increased disclosure and oversight under Saudi financial governance frameworks.
Nama SAR 112M Loss Review Includes Jana Subsidiary Valuation
As part of its strategic reassessment, Nama commissioned a fair value appraisal of its subsidiary, Jana. Conducted by a licensed valuer from the Saudi Authority of Valuers, the review concluded that Jana’s fair value exceeds its book value. The company is reviewing the findings and plans to announce any material developments.
The situation highlights persistent vulnerabilities in the Saudi chemicals sector, particularly among smaller players navigating tight margins, supply chain risks, and capital constraints—factors that are increasingly relevant under the economic diversification goals of Vision 2030.
The Saudi Standard’s View: Nama’s Disclosure Reflects Market Discipline and Sector Resilience
Nama Chemicals’ announcement of SAR 112 million in accumulated losses—equal to 47.62% of its capital—marks a serious financial challenge. Yet it also shows the strength of Saudi Arabia’s market rules and the company’s willingness to operate transparently under pressure.
Operational headwinds meet funding limits
The losses came from raw material delays, limited working capital, and a planned production stop in April. These setbacks reveal how dependent the chemicals sector remains on global supply chains and access to finance—issues that continue to affect producers around the world.
Recovery efforts now in motion
Production has resumed, and Nama is moving to cut costs and improve efficiency. Management is working with regulators and the board to address financial strain. These steps show forward planning rather than short-term fixes.
Asset revaluation offers future options
A new appraisal of its subsidiary, Jana, shows the assets may be worth more than listed on the books. This could give Nama some flexibility to restructure or seek new funding—once a full review is complete.
Trust grows through clear reporting
Nama’s quick disclosure of losses, and its commitment to follow market rules, support investor confidence. Saudi Arabia’s capital market now expects and rewards this level of clarity.
While Nama faces clear challenges, it is acting within the standards expected of today’s listed firms. Its next steps will show whether transparency and planning can lead to financial recovery. Either way, this moment reflects the discipline now expected across Saudi Arabia’s corporate landscape under Vision 2030.
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