Riyadh - Mubasher: Saudi Automotive Services Company (SASCO) has issued a regulatory update regarding the financial reporting of compensation received for the expropriation of a service station in Jeddah.

The company, which operates under Tadawul symbol 4050, clarified that the previously anticipated financial impact of the expropriation will be deferred until the completion of all legal and regulatory procedures for the transfer of property ownership.

This development follows the receipt of compensation totaling SAR 13.02 million for a site owned by its subsidiary, Naft Services Company.

The disclosure serves as a follow-up to SASCO’s previous announcement dated 27 April 2026, regarding the state-led acquisition of a property for the benefit of the Historic Jeddah Project.

The project is part of a broader urban development initiative in the region, necessitating the removal of specific commercial assets, including the service station operated by SASCO’s subsidiary, Naft Services.

In its initial communication, SASCO had projected that the financial results for the second quarter of 2026 would reflect a net loss of approximately SAR 8.20 million. This figure was attributed primarily to the write-off of the station’s share of goodwill that had been recorded during SASCO’s prior acquisition of the Naft Services Company.

Goodwill represents the premium paid over the fair value of identifiable net assets, and the removal of an active station from the portfolio requires a corresponding adjustment to these intangible assets.

However, the company has now informed shareholders and the wider investment community that the formal procedures for the expropriation and the legal transfer of the title deed have not yet been finalized.

Consequently, the accounting recognition of the transaction cannot be completed within the previously estimated timeframe.

SASCO stated that the financial impact will be officially recorded in its consolidated financial statements only once the regulatory authorities have concluded the administrative transfer of the real estate.

The company emphasized that there are no additional costs associated with this delay, nor is there a change in the total compensation amount of SAR 13.02 million already disclosed. The delay is characterized as a procedural matter rather than a dispute or a change in the project's scope.

SASCO confirmed that the current postponement does not have a material negative impact on the company’s ongoing operations or its overall financial stability beyond the timing of the non-cash goodwill impairment.

The company announced the receipt of an official expropriation notice regarding a portion of its real estate holdings in the Arqa District.