Nama Chemicals Co. Announces, Impact of incidental events (Corona Virus) on the company businesses and expected financial impact
|Announcement Detail||Nama Chemicals announces that the company’s business was affected by the global pandemic Covid-19 (Corona Virus) The reason the company was affected by this event is due to the company depends of its business on external parties to conduct its business such as production, sales, supply and transportation operations. The company was affected by the precautionary measures taken by the government of the Kingdom of Saudi Arabia as well as the international precautionary measures as well. The impact occurred by the production operations being affected due to the reduction of staff numbers as well as the production reduction, disruption of transport and shipping of some major materials required for operational and scheduled maintenance works, the decrease in demand for the company's products in local and international markets due to the precautionary measures taken by some of the company's customers as well as the closure of some factories using Nama's main products. This in turn led to a decrease in the prices of the main products by an average of 10%. The net financial impact of the global pandemic on the company's business until the end of the second quarter of 2020 is (7) million riyals, net of the financial savings which the company benefited from governmental initiatives taken by the government of the Kingdom of Saudi Arabia, amounting to 2.8 million riyals. The company's management is continuing its efforts since the beginning of the crisis to ensure the continuity of the company's business and to maintain its obligations with its suppliers as well as the company's customers by committing to supply all basic materials for production as well as sales plans according to market variables factors and emergency conditions. The company expects its businesses will be affected by the global pandemic during the second half of the year of 2020 by (23) million riyals.|
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