Saudi Basic Industries : SABIC Annual General Meeting Approves SR 12 Billion Dividends

SABIC's Ordinary Annual General Meeting (AGM) in Riyadh today (April 10) voted to endorse all agenda items and approve the Board of Directors and Auditors' reports, as well as the final accounts for the financial year ending December 31, 2021.

Based on the Board's recommendation, the meeting approved SR 6.75 billion cash dividends for the second half of 2021 at SR 2.25 per share, representing 22.5% of the nominal share value. The Board of Directors had previously approved similar SR 5.25 billion cash dividends for the first half of 2021 at SR 1.75 per share, representing 17.5% of the nominal share value.

Shareholders eligible for the second half dividends are those who own shares on the due date - the AGM date - and those 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 April 25, 2022. The total proposed dividend for 2021 is SR 12 billion at SR 4 per share, representing 40% of the nominal value per share.

The Assembly elected the Board of Directors' members for the next Board term of three years starting April 10.

Speaking at the meeting, Khalid Hashim Al-Dabbagh, SABIC Chairman, paid tribute to Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and the Crown Prince, HRH Prince Mohammed bin Salman bin Abdulaziz Al Saud-may Allah protect them-for their great efforts in dealing with the challenges that confronted the Kingdom last year.

He said two particular global challenges stood out for SABIC in 2021, the COVID-19 pandemic and the threat of climate change. He said, "To this very day, the coronavirus' lingering persistence is causing market volatility and supply-chain disruption. Nevertheless, I'm heartened by how we persevered with our business to achieve an admirable performance in 2021. As for our response to climate change, the expectations of our customers, lenders, and other stakeholders are now sky high, so to speak. Fortunately, we are incorporated in a country whose wise leaders have a vision of how the goals of the Paris Agreement can best be met in a way that respects the principles of sustainable economic growth."

Yousef Al-Benyan, SABIC Vice Chairman and CEO, described the company's 2021 performance as 'extremely robust' and said, "SABIC achieved an EBITDA of 48.3 billion Saudi riyals in 2021, which was 139% higher than the previous year and the fourth highest in SABIC's history. We also followed through on our transformational strategy, achieving a great value realization with Saudi Aramco. And we continued to focus on strong capital discipline, which helped to support higher dividends and position SABIC well for future growth opportunities."

Mr Al-Benyan highlighted SABIC's commitment to make all operations under its control carbon neutral by 2050, taking into account the different regional and national circumstances. He said, "We made a public commitment for all operations under our control to be carbon neutral by 2050, taking into account the different regional and national circumstances. This aligns us with the Paris climate-change agreement and guides us in pursuit of solutions."

He concluded, "We have positioned ourselves to become the preferred world leader in chemicals. But there is no room for complacency. We will extend our synergies with Saudi Aramco and further evolve our business model to continue to create value. We will meet stricter ESG standards as we promote sustainable development more broadly around the world and drive forward a circular economy for plastics. And we will embrace new norms that instill greater resilience to external disruptions and greater agility of response."

The Assembly further authorized the Board of Directors to distribute interim dividends, semi-annually or quarterly for the fiscal year 2022. It also authorized the Board to determine the maturity and disbursement date as per the rules and regulations of the Companies Law, in line with the company's financial position, cash flows and expansion and investment plans.