Riyadh – Mubasher: Saudi Arabian Mining Company (Ma’aden) achieved net profits after Zakat and tax worth SAR 5.22 billion in 2021, against net losses of SAR 208.98 million a year earlier.
The company’s revenues grew by 44.07% to SAR 26.76 billion last year, compared to SAR 18.57 billion in 2020, the financial results showed on Sunday.
The earnings per share (EPS) stood at SAR 4.25 in 2021, versus losses per share of SAR 0.17 in the prior year.
Recommendation to dividend withhold
The board of Ma’aden recommended, during its meeting on 24 February, not to distribute cash dividends for 2021, according to a separate bourse disclosure on Sunday.
The company noted that halting dividends for last year resulted from Ma’aden’s need to fund its ongoing and future projects.
Proposal of capital raise
The board has also recommended a 100% capital increase to SAR 24.61 billion from SAR 12.30 billion through bonus shares.
The capital raise will be carried out by granting one bonus share for every one owned share.
The company will capitalise SAR 12.30 billion from its retained earnings and part of the statutory reserve to increase the capital, which will be distributed over 2.46 billion shares, compared to 1.23 billion shares prior to the raise.
The capital increase recommendation aims to boost the company’s capital base to endorse its future business growth plans.
Ma’aden will announce the eligibility date for the bonus shares at a later time. The proposed capital hike is still subject to approvals of official authorities and the extraordinary general meeting (EGM).
It is noteworthy to mention that in the third quarter (Q3) of 2021, the Saudi listed company's net profits reached SAR 1.27 billion, a surge from SAR 6.47 million in Q3-20.
