DOHA: The Board of Directors (BOD) of Salam International Investment Ltd-SIIL (The Company) has recommended to the upcoming General Assembly (March 27) to approve cash dividends of seven percent of the paid up capital of shareholders with an earning per share (EPS) of QR0.74, a press statement issued by SIIL said yesterday.
The company disclosed the financial statements for the year ended December 31, 2012. The financials revealed a net profit of QR66.12m in 2012 as compared to QR159.6m in 2011. The Company’s earnings per share (EPS) in 2012 amounted to QR0.74 versus QR1.39 in 2011.
Salam International held the board of directors meeting on Sunday (March 03) to discuss its agenda and resolve host of other issues.
It approved the consolidated financial statements for the year ending December 31, 2012, and respective Auditors’ Report, and recommended to the General Assembly to approve it in its upcoming meeting to be held by the end of this month.
The board of directors said that the main reason for the decline in profits is due to the decline in the revenues of subsidiaries operating in the contracting sector primarily, where those subsidiaries have been under pressure as a result of the scarcity of profitable projects during the year 2012.
This is in addition to the decline in the investment income, rents, and the increase in the cost of financing some of the investment opportunities that are characterized by a longer maturation period before receiving income cash flow, including Salam Bounian Development Co.
Despite the decrease in the profits, the Company expects to improve its performance for better results in 2013 compared to 2012. What enhances the company’s expectation in better results for the next year is the size of the business, the number of awarded and ongoing projects, where the company and its subsidiaries operating in the contracting sector were awarded a number of tenders, for projects that will commence in 2013.
The board of directors reviewed the judgment of the Court of Appeal, its causes and pronouncement, and it has decided to file a cassation appeal for the second time against the new Court of Appeal decision within the legal period allowed, and to file a complaint against Qatar Financial Markets Authority’s (QFMA) decision to repeat suspension of the Company’s shares trading at Qatar Exchange.
Accordingly, when and if the cassation appeal becomes concluded as final in its executive form, the Board approved the Company’s alternative contingency plan to execute the court decision in accordance adopted by the General Assembly on January 18, 2012. Proceeded by QFMA’s new decision to suspend the shares’ trading, the contingency plan was submitted to QFMA yet again to comply with QFMA’s request post the new Court of Appeal decision issuance.
The Board is surprised by QFMA suspension of trading for the third time based on the same case. The Company is of the view that such suspension merely leads to certain damage of the shareholders’ rights, the company’s interests, and would deteriorate the trust in the Company’s shares.
“The Board re-emphasizes its conviction that such suspension is unjustified particularly with the sufficient and adequate disclosure made by the company,” said the statement.
The Peninsula
