Dividend distribution depends on the company’s results of operations, cash liquidity, working capital needs and capital investments. Based on this in- formation, the Board of Directors, in its meeting held on 21/2/2011, recom- mended to the General Assembly to distribute an amount of SAR 315 million in dividends to shareholders for the fiscal year 2010, i.e. at the rate of 1 Saudi Riyal per share. In accordance with the provisions of Article (36) of the memorandum and arti- cles of association of the company: “Dividends are distributed to shareholders after deducting all general expenses and other costs and statutory reserves”. In accordance with the provisions of Article (34) of the memorandum and ar- ticles of association of the company: “Members of the Board of Directors are also entitled to remuneration for attending Board meetings, in addition to, a lump sum annual bonuses in accordance with applicable regulatory rules”. The following table shows the net profits generated during the years 2006 - 2010 and dividend distributions made proportionate to net profit averaging 70% and dividend distributions proportional to capital averaging 10% during the past five years. NSCSA affiliate allocated what they believe to be a sufficient provision to meet any zakat and tax claims for these periods. During 2010, NSCSA and its affiliate (NCC) made a payment for unpaid zakat amounting to SAR 22.59 mil- lion in accordance to the 2009 financial year. Moreover, NSCSA and its affiliate company also paid the zakat deductions that were unpaid for 2010 amounting to SAR 4.34 million. Social Insurance: Total NSCSA contributions to the General Organization for Social Insurance (GOSI) in 2010 amounted to SAR1,793,502 compared to SAR 1,723,052 in 2009. Other Government Charges (Visas, Passports, etc.): Visas and passport-related charges paid to the Government Treasury in 2010 amounted to SAR 79,692 compared to SAR 186,503 paid in 2009.
Dividend Distribution
Net Profit (SAR ,000)
Cash Dividends (SAR ,000)
Bonus Share Distributions
Cash Dividends to Net Profits Ratio (%)
Distribution from Capital Ratio (%)
Fiscal Year
2006
441,496
225,000
---
51%
10%
2007
422,576
315,000
---
74.5%
10%
2008
749,968
472,500
---
63%
15%
2009
369,300
315,000
---
85.3%
10%
2010*
414,878
315,000
---
76%
10%
Total
2,398,218
1,642,500
---
Annual average 68% Annual average 11%
* Subject to the approval in the Extraordinary General Assembly.
The National Shipping Company of Saudi Arabia Annual Report 2010
34
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