On 2026-08-06 15:55:43 (Saudi Time), Morabaha Marina Financing Co. announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ending 30 June 2026, sales/revenue declined 18.94% YoY to SAR 85.23 million (SAR 85,226,862 / 1,000,000 = SAR 85.23 million), primarily driven by a decrease in financing amounts granted to customers and the adverse impact of non-performing loans. The company swung from a net profit of SAR 2.98 million (SAR 2,975,926 / 1,000,000) in the prior year period to a net loss of SAR 26.38 million (SAR 26,384,574 / 1,000,000) in the current period, largely due to the revenue decline and a significant increase in impairment losses, partially offset by reduced losses from its subsidiary (Loop). Additionally, the company revised its ECL assumptions to reflect heightened geopolitical uncertainty, resulting in an additional ECL charge of SAR 0.54 million (SAR 544,555 / 1,000,000) for the period.

Quarter-on-Quarter Performance Drivers

QoQ revenue declined 17.47% to SAR 38.53 million (SAR 38,534,427 / 1,000,000 = SAR 38.53 million), driven by a reduction in financing amounts granted to customers and the adverse impact of non-performing loans. The net loss deepened sharply by 551.70% to SAR 22.87 million (SAR 22,874,600 / 1,000,000 = SAR 22.87 million) compared to a net loss of SAR 3.51 million (SAR 3,509,973 / 1,000,000 = SAR 3.51 million) in the previous quarter, primarily due to the decline in revenues and a significant increase in impairment losses.

Other Items

The external auditor issued an unmodified conclusion with no additional comments or qualifications noted. Management restated prior year comparative figures in accordance with IAS 8, including: (1) reclassification of transaction cost amortization from special commission expenses to special commission income, aligning with IFRS 9 effective interest method requirements; and (2) reclassification of repossessed assets held for sale back to Islamic financing receivables, as the company had not completed the foreclosure process nor obtained control over the underlying collateral. Additionally, prior year cash flow disclosures were restated to separately present special commission income received in accordance with IAS 7. Total shareholders' equity stood at SAR 802,963,932 as of the current period, compared to SAR 833,685,753 in the same period of the prior year, a decline of 3.685%. Loss per share for the current period was SAR -0.38, compared to SAR 0.04 in the prior year period. No accumulated losses as a percentage of capital were reported. Regarding future standards, IFRS 18, effective from 1 January 2027, will replace IAS 1 and has not been early adopted by the company; based on management's preliminary assessment, its adoption is expected to affect the presentation, classification, aggregation, disaggregation and disclosure of financial information, without affecting total profit or equity.

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