Saudi Arabia’s Molan Steel Co. reported a net loss of SAR 2.8 mln (USD 0.74mln) in H1 2025, compared with SAR 2.49mln a year earlier, its stock exchange filing showed. Sales revenue dropped 16.5pct YoY to SAR 33.2m (USD 8.8mln).
The company attributed the losses to liquidity redirected toward its industrial expansion strategy, expected to support future profitability. Accumulated losses reached SAR 7.39mln (USD 1.96mln), or 27.8pct of capital, mainly due to the acquisition of Mayar International Industry Co. The deal led to SAR 2.3mln (USD 0.61mln) in provisions for obsolete inventory, supplier advances, and credit losses, while internal financing also pressured working capital.
Molan will follow Saudi regulations for listed firms with losses exceeding 20pct of capital. The company acquired Mayar from Yara International Ltd. in December 2024 for SAR 34.88mln (USD 9.28mln). In July, Yara filed a commercial lawsuit against Molan seeking SAR 17.88mln (USD 4.76mln) in alleged unpaid dues from the sale, plus SAR 2mln (USD 0.5mln) in damages.
Molan Steel is a supplier of steel products for the construction and fabrication sectors across the Middle East.
1 USD / 3.75 SAR
