Dividends Distribution Policy
The Company distributes its dividends according to operating results, liquidity and working capital requirements, as well as capital investments. Therefore, the board has decided in its meeting held on December 20th, 2012 to recommend to the General Assembly the distribution of cash dividends amounting to SAR 315 million to shareholders for the year 2012, at the rate of SAR 1 per share, which represents 10% of the capital, provided that eligibility for dividends is for those shareholders owning shares at the closing of the stock market on the General Assembly meeting date. Article “36” of the Company’s Memorandum and Articles of Association states that: “Dividends shall be distributed to
shareholders after deducting all general expenses, other costs and statutory reserve in accordance with the provisions of Article “34” of this Memorandum and Articles of Association. The members of the Board of Directors are also entitled to remuneration for attending the Board meetings, in addition to a lump sum annual bonus in accordance with applicable regulatory rules. The following table shows the net profits achieved and the cash dividends and their percentage of net profit which on average amounted to 68% and the average rate of dividends distribution to capital which amounted to 10% during the past five years (2008-2012).
Cash Dividends (SAR’000)
Distribution of Bonus Shares
Net Profits (SAR’000)
Cash Dividends to Net Profit Ratio (%)
Distributions to Cap- ital Ratio (%)
Fiscal Year
2012
503,993
315,000*
-
62%
10%
2011
287,768
157,500
-
55%
5%
2010
414,878
315,000
-
76%
10%
2009
369,300
315,000
-
85%
10%
2008
749,968
472,500
-
63%
15%
Total
2,325,907
1,575,000
- Annual average 68 % Annual Average 10%
* Subject to the approval by the Ordinary General Assembley
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