Saudi's Aldrees Petroleum eyes 25% capital hike

Fuel retailer's full-year 2020 net profit down by 58%

  
Image used for illustrative purpose. A trader monitors stocks at a Saudi Bank in Dammam October 26, 2008.

Image used for illustrative purpose. A trader monitors stocks at a Saudi Bank in Dammam October 26, 2008.

REUTERS/Stringer

Saudi fuel retailer Aldrees Petroleum and Transport Services Co. (Aldrees) is planning to increase its capital by 25 percent.

In a bourse filing on Tuesday, the firm said its board has recommended to increase the capital from 600 million riyals to 750 million riyals ($199 million) through the issuance of bonus shares.

The company plans to grant one bonus share for every four shares owned.

The capital increase will be used to fund the company’s business and future expansions, the firm said in a statement to the Saudi Stock Exchange (Tadawul).

The board also recommended a 10 percent cash dividend, at one riyal per share, for the full year 2020.

Aldrees’ 2020 full-year net profit reached 121 million riyals, showing a 58 percent decline compared to a year earlier.

(Writing by Brinda Darasha; editing by Cleofe Maceda)

brinda.darasha@refinitiv.com 

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2021

More From Equities