The Savola Group announced today its second quarter financial results for the year 2007 declaring a net income of SR 764 million, which included exceptional capital gain of SR 712 from the sale of its whole shareholding in Egyptian Fertilizer Company (EFC). Also, the Group recorded SR103 million in respect of impairment of certain assets. This resulted in net income of SR 901 million for the six months ended June 30, 2007, showing an increase of 136% as compared to the net income of SR 382 million for the same period last year.
The Group reported operating profits of SR 186.5 million for the first six months of 2007 as compared to SR 166.4 million for the same period last year, which represents an increase of 12%. Earnings per share for the six months ended June 30, 2007 were SR 2.40 as compared to SR 1.02 for the same period last year.
Continuing its quarterly dividend distribution policy, the Board of Directors has approved distribution of SR 93.75 million as dividends, equivalent to SR 0.25 per share to all registered shareholders at the close of business in the Saudi Stock Exchange (Tadawul) on July 18, 2007. The Group has already distributed dividends of SR 93.75 million for the first quarter of this year and the Board recently approved to distribute exceptional dividends of SR 187.5 million, bringing the cumulative dividends for the first six months of 2007 to SR 375 million, equivalent to SR 1 per share.
Commenting on the results of operations, Dr. Sami M. Baroum, the Group Managing Director, mentioned that the Board had announced at the beginning of the year that it expected 12% growth in operating profits for the year 2007 and the Group had succeeded in achieving the targeted growth in the operating profits during the first half of 2007. Dr. Baroum attributed this achievement to the improved performance of the subsidiaries and to the recent expansion of Group’s operations inside and outside the Kingdom. Dr. Baroum also praised the efforts of the management and employees in delivering the Group’s results and assured that the Group will continue maximizing its shareholders’ value by exploring and entering into new attractive strategic investment opportunities. (SR3.75=US$1).
