Dividend Distribution Policy The share profit is calculated from the operating income of the year, sub-businesses, and net profit of the year based on the weighted average of the existing share during the year. The dividends to be distributed after end of the year are treated as retained earnings rather than liabilities unless the distribution is approved by the General Assembly prior to the end of the period. Such dividends are recorded within the obligations of the year in which the General Assembly approves them until being distributed.
The share profit was calculated based on the weighted average of the existing shares for the two years ending on December 31, 2013 & 2014 (i.e. 338.41 million shares and 315 million shares, respectively).
On March 31, 2014, the ordinary General Assembly approved to pay dividends at the rate of 10 percent of the capital, or SAR 315 million at SAR 1 per share for 2013. The balance of unclaimed dividends as of December 31, 2014 reached SAR 33.88 million compared to SAR 32.09 million in 2013. During its meeting held on December 11, 2014, the Board of Directors recommended distributing cash dividends to the shareholders amounting to SAR 393.75 million (i.e. 10% of the capital), at the rate of SAR 1 per share for 2014. This will be subject to the shareholders’ approval during the General Assembly.
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Annual Report 2014
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