Southern Province Cement shareholders approved a SAR 0.25 dividend and gave the board power to declare interim dividends quarterly or biannually. The shift could reshape payout expectations.
Alpha Score of 46 reflects weak overall profile with moderate momentum, poor value, weak quality, weak sentiment.
Shareholders of Southern Province Cement Co. approved a dividend of 0.25 riyals per share for the second half of 2025 at the ordinary general assembly meeting. The total payout is 35 million riyals, or 2.5% of the company's capital. The dividend will be paid on July 5, 2026, to shareholders registered by the second trading day after the entitlement date.
The meeting also gave the board the authority to distribute interim dividends on a quarterly or biannual basis for fiscal 2026. That delegation is valid for one year, until the next general assembly, and covers dividends paid before the final annual approval.
The single dividend approval is straightforward. The better read is the board's new power to pay more frequently. Historically, the company paid once or twice a year following the annual shareholder vote. With this delegation, the board can declare an interim dividend for the first half of 2026 without calling a special meeting. That flexibility could help the company match payouts to cash flow and give shareholders a steadier income stream. On the other hand, it also allows the board to skip a payment if conditions deteriorate, which an annual resolution would lock in.
Shareholders also approved the related party supply contract with Saudi Chemical Co., owned by Saudi Chemical Holding Co., in which board member Thamer al-Muhaid has an indirect interest. The deal covers cement transport from February 2025 to February 2028. The annual transaction value in 2025 was about 7 million riyals, based on actual delivered quantities without any preferential terms.
Dr. Mohamed Al-Amri & Co. was reappointed as auditor for fiscal 2026 and the first quarter of 2027, with a fee of 645,000 riyals. An additional 200,000 riyals was approved for extra audit hours spent on the 2025 financial statements.
The next concrete marker for traders tracking Southern Province Cement will be the board's first decision on an interim dividend for the first half of 2026. If management announces one in the coming months, it would confirm a more regular payout cadence. If they hold off, the authority may be used mainly as a safeguard.
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