Nama says asset impairment report to be completed by 2017

Nama Chemicals, a Saudi producer of epoxy and caustic soda products, has said that its report on preliminary financial statements for the period ending Sept. 30, 2016, will be finalized by Q1 2017.

The Saudi-listed company incurred gross losses over 2014 and 2015, implying fixed asset impairment. It is now revising the book value of its fixed assets to determine whether it has incurred losses due to a drop in their value.

Since the size of asset impairment losses is not yet determined, it is unclear whether a settlement is required, and questions have come up regarding the company’s going concern value.

The related assets are valued at SAR 1.5 billion, while accumulated losses reached SAR 322.73 million by Sept. 30, 2016, representing 25.11 percent of capital.