Theeb lowers First Line contract by SAR 18.5M after vehicle reduction

Theeb says no vehicles remain due for delivery under the contract following the amendment

Theeb Rent a Car Co. announced on Nov. 1 that it had delivered 70% of the vehicles agreed under its contract with First Line Logistics Co.

In a statement to Tadawul, the company also noted that the two parties had amended the contract scope by reducing the number of vehicles by 300, representing approximately 30% of the originally agreed total.

As a result, the contract value decreased by SAR 18.5 million, in line with the revised commercial terms agreed between the parties.

The vehicles so far were delivered in accordance with the revised scope agreed by both parties, with no remaining vehicles due for delivery under the contract following the amendment.

Theeb added that the delay had no financial impact.

The financial impact remained limited to a reduction in the contract's total expected value resulting from the revised scope and lower number of vehicles covered. No previously recognized revenue will be reversed or adjusted, as revenue is recognized only for vehicles actually delivered in accordance with the revised contract scope.

According to Argaam data, Theeb signed a long-term vehicle leasing contract with First Line Logistics in December 2025, valued at SAR 61.68 million. The contract covered the leasing of 1,000 vehicles over four years starting in 2026, with deliveries scheduled in batches during the first nine months from the contract commencement date.