Methanol Chemicals Company (Chemanol) announces that following the appointment of Messrs/ PwC (the external auditor for Company's accounts for 2016) to review the readiness of the Company to meet the requirements of the transition plan to the International Financial Reporting Standards (IFRS), and issue the financial statements for 2016 in accordance with the IFRS, the Company has re-updated its accounting policies and determined the significant impacts of such implementation by reducing the Shareholders' Equity by SAR 168 million detailed as follows:

• Adjusting the value of the fixed assets taking into consideration the impact of the reevaluation which showed a decline in the net value of the said assets by around SAR 149 million.  
• Increasing the End of Service Benefits Provision by around SAR 12.6 million as a result of the actuarial valuation.
• Reducing the balance of loans by SAR 6.4 million due to the measurement of loans by way of amortized cost. It is worth mentioning that the Company is ready for the implementation of IFRS as of Q1 of the financial year 2017.