JEDDAH, 28 March 2006 - Yanbu Cement Co. announced yesterday that it will triple its dividends for the second half of 2005. The company will pay SR15 per share in dividends for the second half, following a 6-percent increase in the company’s net profit in 2005. The company made this announcement following the approval of the company’s general assembly on Sunday to distribute 30 percent of the second half profits to its shareholders. With this paying scheme, the company’s overall dividends for the entire year reached 40 percent of its net profits.
The company expects to see a continuation in the flow of its profit from 2005 as it announced yesterday that it expects its net profits for the first quarter of 2006 to increase by 15 percent. The company forecast its earnings for the first quarter of 2006 at SR121 million ($32.3 million).
Yanbu’s shares rose yesterday by 4.84 percent to close at SR541. Yanbu encountered some problems this month after a fire broke out in its fourth production line on March 7. However, the company quickly restored its production level as it announced Sunday that production on its fourth line had resumed.
Last year, the company made SR453 million ($120 million) in net profits compared to SR427 million ($113.9) million in 2004. The company reported that its net profits for the fourth quarter in 2005 were SR115 million ($30.6 million).
