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Nama Chemicals' JANA Hit by Second Power Cut in Seven Months
A second electricity disconnection at Nama's JANA subsidiary over unpaid SEC dues signals recurring liquidity stress. The outage duration will determine the earnings hit.
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Nama Chemicals Co. announced that electricity to its subsidiary Jubail Chemical Industries Co. (JANA) was disconnected as of June 7, 2026, citing outstanding dues owed to Saudi Electricity Co. (SEC). The disclosure to Tadawul marks the second such disruption in seven months. A similar power cut occurred in November 2025 and was resolved on February 23, 2026, after an agreement with SEC. The board and executive management are working to restore service, while the company assesses any financial impact.
Why a Second Power Cut Signals Recurring Liquidity Stress
The simple read is that a chemicals plant lost power because an electricity bill went unpaid. The better market read is that JANA is experiencing recurring liquidity stress, and that stress has now triggered a second production halt. Chemical manufacturing relies on continuous power for electrolysis, cracking, and distillation processes. A shutdown means output stops, fixed costs (labor, debt service, depreciation) continue, and customers who depend on JANA's supply may seek alternative sources. The November 2025 event lasted roughly three months; a repeat of that timeline would mean a significant revenue hole for Nama Chemicals in the current quarter.
JANA's Production Halt: The Cost Mechanism
Nama Chemicals is a listed petrochemicals company on Tadawul. JANA produces commodity chemicals used in industrial downstream markets. The financial impact is not yet quantified – the company said it will announce effects "in due course." That vagueness leaves investors to estimate the damage. During the November 2025 outage, the stock likely absorbed the hit through lower earnings expectations. This time, the market can price in a similar duration but also the risk that the resolution pattern (payment agreement after three months) becomes embedded in Nama's operating cycle. If the outage persists beyond a month, working capital may tighten, and any existing bank covenants tied to earnings or liquidity could come into focus.