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SABIC Annual General Meeting Approves Sr 9 Billion Dividends

14/04/2021

Home > News & Media > Latest News > SABIC Annual General Meeting Approves Sr 9 Billion Dividends

SABIC’s Ordinary Annual General Meeting in Riyadh on April 13 endorsed all the items on its agenda by vote and approved the Board of Directors and Auditors’ reports, as well as the final accounts for the financial year ending December 31, 2020. For the second consecutive year, the meeting was held virtually in compliance with health advisories amid the continuing COVID-19 pandemic.

Based on the Board’s recommendation, the meeting approved SR 4.5 billion cash dividends for the second half of 2020 at SR 1.5 per share, representing 15% of the nominal share value. The Board of Directors had previously approved similar SR 4.5 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 SR 9 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, extended his sincere gratitude to the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud, for their great efforts in dealing with the consequences of the pandemic.

He reflected also upon how 2020 brought an unprecedented level of global disruption, during which SABIC was among the first companies to realize the need for global businesses to reassess their operations and accelerate their responses to rising trends, including the drive towards digitalization.

Mr Al-Benyan added how SABIC’s key performance indicators during 2020 evidenced this, while underlining the strength of the company’s business model and growth strategy. He emphasized how despite the challenges of the year, SABIC recorded an improved performance in sales volumes, with 117 billion SAR 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.

Mr 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 USD 1.5 billion and USD 1.8 billion.”

Al-Benyan also highlighted the continued impact of SABIC’s transformation program as a key element of the company’s journey to becoming the preferred world leader in chemicals. 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.”

Mr Al-Benyan also reinforced how SABIC takes its responsibilities to society and commitment to sustainability seriously – highlighting how 2020 witnessed the enhancement of SABIC’s commitments to Environmental, Social and Governance (ESG) matters with the launch of the ESG Reporting Steering Committee - which will oversee the integration of vital ESG factors into our business strategies. This will ensure that SABIC continues to follow transparent, robust, complete and value-driven ESG performance and reporting.

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