Riyadh - Mubasher: Morabaha Marina Financing Company has released its interim financial results for the first quarter (Q1) of 2026, shifting from profitability to a net loss.
The company recorded a net loss of SAR 3.51 million for the three-month period, a significant reversal from the SAR 4.22 million in net profit achieved during the same quarter of the previous year. This performance reflects a broader contraction in revenue and an increase in impairment provisions against the company’s financing portfolio.
Total revenue for the first quarter reached SAR 46.69 million, representing an 11.57% decline compared to the SAR 52.80 million reported in the corresponding period of 2025.
On a sequential basis, revenues fell by 14.16 percent from the 54.39 million riyals recorded in the Q4-25.
Management attributed this decline primarily to a reduction in the volume of new financing granted to customers. Furthermore, the company’s top-line results were impacted by the suspension of revenue recognition for non-performing loans, a standard accounting practice for assets that are no longer generating reliable income.
The company’s profitability metrics showed a marked downturn across the board. Gross profit for the quarter stood at SAR 35.56 million, down 10.39% from SAR 39.68 million a year earlier. The operating loss was recorded at SAR 3.17 million, compared to an operating profit of SAR 3.30 million in the prior-year period.
Beyond the drop in revenue, the net loss was driven by higher impairment losses on the financing portfolio. However, these losses were partially mitigated by a reduction in the losses incurred by the company’s subsidiary, Loop.
The loss per share for the current quarter was SAR 0.05, compared to earnings per share of SAR 0.06 in Q1-25. Total shareholders’ equity, excluding non-controlling interests, stood at SAR 825.84 million as of March 31, 2026, a 2.46 percent decrease from the SAR 846.65 million reported at the end of the same period last year.
The company’s net profits shrank by 96.91% to SAR 1.01 million in 2025 from SAR 32.71 million in 2024.
