Saudi's Maaden plans to withhold dividend for 2020 even as net loss narrows

Instead of giving dividends, the cash will be utilized to execute ongoing and future projects

  
A Saudi labourer walks at Maaden Aluminium in Ras Al Khair, Saudi Arabia May 22, 2016.

A Saudi labourer walks at Maaden Aluminium in Ras Al Khair, Saudi Arabia May 22, 2016.

REUTERS/Faisal Al Nasser

Saudi Arabian Mining Co (Maaden) plans to withhold cash dividends for fiscal year 2020, the company said in a statement to Tadawul on Wednesday.

Maaden said that cash will be utilized to execute ongoing and future projects.

The board’s recommendation is subject to approval of the upcoming general assembly.

The company had decided previously decided to freeze dividend for 2019, diverting the cash to finance ongoing projects.

For fiscal year 2020, the Saudi miner narrowed net losses after Zakat and tax to 209 million riyals from 739.5 million riyals in the year-ago period.

The improvement was driven by higher sales volume of all products except alumina and industrial minerals and came despite a decrease in the average realized prices of all products except gold. Zakat and tax expenses too declined 63 percent, the company said on Tadawul.

(Reporting by Brinda Darasha; editing by Seban Scaria)

brinda.darasha@refinitiv.com

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