SASCO shareholders approved semi-annual or quarterly dividend authority for the board and rejected two related-party deals at the general assembly.
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Shareholders of Saudi Automotive Services Co. (SASCO) voted Thursday to let the board distribute interim dividends on a semi-annual or quarterly basis, a shift from the annual payout structure that has been the company's standard. The authorization, approved at the ordinary general assembly, gives the board discretion over the timing and size of payouts through the next fiscal year.
The same meeting rejected two related-party transactions. Shareholders voted down a real estate lease agreement with board member Abdulaziz Al-Othman and a service contract with a company tied to another board member, according to the company's filing on the Saudi Exchange. No details on the value or terms of the rejected deals were disclosed.
The dividend resolution aligns SASCO with a broader trend among Saudi-listed companies moving toward more frequent distributions. The Capital Market Authority's updated corporate governance rules encourage interim dividends as a way to improve shareholder returns and transparency. SASCO's board now has the flexibility to declare payouts based on quarterly or half-year earnings, rather than waiting for the annual close.
SASCO operates fuel stations, convenience stores, and vehicle maintenance centers across the kingdom. The company reported net profit of 187 million riyals in 2025, up from 152 million riyals the prior year, driven by higher fuel volumes and retail margins. The stock has gained roughly 12% year-to-date, outperforming the Tadawul All Share Index.
The rejected related-party deals suggest shareholders are scrutinizing insider transactions more closely, a dynamic that has played out at other Saudi companies this year. The assembly also approved the board's 2025 annual report and financial statements, and ratified the appointment of auditors for 2026.
SASCO's next earnings release is expected in late July, which will give the first look at whether the board exercises its new dividend authority.
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