Methanol Chemicals Company (2001) Q4 2025 earnings summary

Executive summary

• Reported a net loss of SAR 542.2 million for 2025, significantly higher than the SAR 292.5 million loss in 2024, driven by major impairment charges and operational challenges.

• Revenue declined to SAR 621.9 million in 2025 from SAR 705.6 million in 2024, reflecting lower demand and prices in key products.

• The company’s current liabilities exceeded current assets by SAR 329.97 million, and accumulated losses surpassed half of share capital, triggering regulatory requirements for capital restructuring.

• Material uncertainty exists regarding the company’s ability to continue as a going concern due to ongoing legal disputes, liquidity constraints, and covenant breaches.

Financial highlights

• Revenue fell 11.9% year-over-year to SAR 621.9 million; gross profit dropped sharply to SAR 8.1 million from SAR 93.3 million.

• Operating loss widened to SAR 500.7 million from SAR 247.1 million year-over-year.

• Impairment losses on non-current assets totaled SAR 336.5 million, compared to SAR 2 million in 2024.

• Net finance costs were SAR 45.9 million, and basic/diluted loss per share was SAR 7.11 (vs. SAR 4.13 in 2024).

• Cash and cash equivalents at year-end were SAR 61.6 million, down from SAR 111.2 million.

Outlook and guidance

• The Board is pursuing a capital reduction and a rights issue of SAR 350 million to restore capital structure and eliminate accumulated losses.

• Liquidity improvement measures include cost reductions, operational enhancements, and deferral of non-essential expenditures.

• The outcome of legal disputes and the success of capital actions remain uncertain, impacting future financial stability.