Dividend Distribution Policy
On 30, March, 2013 the General Assembly approved to pay the dividends at 10% of the capital or SAR 315 million at SAR 1 per share for 2012, and the dividends were cashed on 15 April, 2013. The following table shows the net profit and cash dividends realized, and their percentage in net profit amounting to 64% on average, as well as the average ratio of dividend payout to capital which amounted to 9% during the past five years (2009-2013).
Article “36” of the Company’s Memorandum and Articles of the Association states: “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 the 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.” Earnings per Share (EPS) were calculated based on the number of outstanding shares during the two years ended on December 31, 2012 and 2013, which amounts to 315 million shares so that EPS amounted to SAR 2.39 for the year ended December 31, 2013 (SAR 1.60 in 2012).
The Company distributes its dividends according to the operating results, liquidity and working capital requirements, as well as capital investments. Therefore, the Board of Directors has decided in its meeting held on December 18, 2013 to recommend to the General Shareholder Meeting the payout of dividends amounting to SAR 315 million to shareholders for the year 2013, at the rate of SAR 1 per share, which represents 10% of the capital, provided that the eligibility for dividend payout is for those shareholders owning shares at the closing of the stock market on the General Shareholder Meeting date.
Net profit (in SAR thousand)
Cash Dividends (in SAR thousand)
Dividends Payout Ratio (%)
Dividends to Capital Ratio (%)
Fiscal Year
2013
752,262
315,000*
42%
10%
2012
503,993
315,000
63%
10%
2011
287,768
157,500
55%
5%
2010
414,878
315,000
76%
10%
2009
369,300
315,000
85%
10%
Total
2,328,201
1,417,500
Annual Average 64% Annual Average 9%
* Subject to the approval of Ordinary General Assembly Meeting
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