Saudi Arabia’s Molan Steel Co. reported a 72pct YoY decline in revenue to SAR 9.3 mln (USD 2.47 mln) in the first half of 2026, while its net loss widened to SAR 11.1 mln (USD 2.95 mln) from SAR 2.8 mln a year earlier.
The company attributed the sharp decline in sales primarily to restrictions imposed on its bank accounts amid a dispute related to the acquisition of Mayar International. The dispute with Yara International was settled in March 2026, with the final settlement resolving the claims and lifting restrictions on Molan Steel’s bank accounts.
However, the company said the restrictions had affected its ability to finance working capital, purchase inventory and conduct sales and collection operations in the ordinary course, contributing to the sharp decline in H1 sales.
Separately, Molan Steel said its board decided on August 27 to withdraw its application to the Capital Market Authority for a SAR 26.6 mln rights issue, which would have increased the company’s capital from SAR 26.6 mln to SAR 53.2 mln (USD 14.2 mln). The board said difficulties in continuing with the application, including the need for a reverse share split, and the availability of faster alternatives to address the company’s financial position prompted the decision.
Molan Steel said the withdrawal of the rights issue application would not affect its operational activities or existing obligations.
Molan Steel supplies steel products for the construction and fabrication sectors across the Middle East.
1 USD / 3.75 SAR