Sabic’s recent Ordinary Annual General Meeting in Riyadh, Saudi Arabia has approved SR4.5 billion ($1.2 billion) cash dividends for the second half of 2020 at SR1.5 per share, representing 15% of the nominal share value.

The Board of Directors had previously approved similar SR4.5 billion cash dividends for the first half of 2020 at SR 1.5 per share, representing 15% of the nominal share value.

Eligibility for the second half dividends of the year will be for the shareholders owning shares on the due date – that is, the date of the Ordinary General Meeting –  and those shareholders registered in the company’s share registry at the Depository Center at the end of the second trading day following the due date. The dividends will be distributed on May 3, 2021. The total dividend for 2020 is SR9 billion at SR 3 per share, representing 30% of the nominal value per share.

The Assembly approved the discharge of the Board of Directors members for the fiscal year ending December 31, 2020. It also approved the amendments to the charter of Audit Committee. It further reappointed Ernst & Young as the external auditor of the company to review and audit quarterly and the annual financial statements of the fiscal year 2021, in addition to the first quarter of the fiscal year 2022. The Assembly also approved the auditor’s fees.

The Assembly further authorized the Board of Directors to distribute interim dividends, semi-annually or quarterly for the fiscal year 2021.

Yousef Al-Benyan, Sabic Vice Chairman and CEO, emphasised how despite the challenges of the year, Sabic recorded an improved performance in sales volumes, with SR117 billion in sales; while demonstrating to customers around the world that they could rely on Sabic even in the hardest of times, with production levels amounting to 60.4 million metric tons, and increasing 0.8% versus 2019.

Al-Benyan said: “These outcomes indicate that we have not only learned to adapt to the New Normal but have also positioned our business for continued success as the global economy recovers and returns to growth this year. Our resilience is defined by our sound business model, operational efficiency, and effective customer engagement. As always, our performance has been underpinned by an uncompromising focus on our customers and on delivering innovative sustainable solutions.

“The year saw some momentous developments for Sabic. We embarked upon our new journey of value creation with Saudi Aramco and began, together, the implementation phase of our alignment. This will position us for long-term growth and take us to new heights by bringing additional scale, technology and investment potential opportunities. By 2025, Sabic’s share of the expected annual value creation with Aramco will amount to between $1.5 billion and $1.8 billion.”

He added: “We moved forward during 2020 with the completion of our share purchase agreement with SAFCO, creating a new operating model which provides more focus and agility for our agri-nutrients business and giving Sabic a platform for more sustainable growth – both as a national champion and a global leader in the agri-nutrients industry.

“Evolution was also evident in our Specialties business, which became a stand-alone entity. This important milestone unlocks further growth potential and enables our Specialties business to advance its business model and better meet customer requirements.” – TradeArabia News Service