GASCO cash dividends soar 300% from 2020 to 2023

Logo of National Gas and Industrialization Co. (GASCO)

National Gas and Industrialization Co.’s (GASCO) cash dividends to shareholders surged 300% from 2020 to 2023. GASCO paid a semi-annual cash dividend at SAR 2 a share, totaling SAR 150 million, for 2023, compared to a dividend at SAR 0.5 a share, totaling SAR 37.5 million, for 2020.

GASCO shareholders generated a dividend yield of 18.87%, or SAR 5.85 a share, from 2020 until 2023, in accordance with the base price of SAR 31 a share on Jan. 1, 2020.

GASCO shareholders, during the general meeting held mid-2021, approved authorizing the board of directors to pay an interim dividend on a semi-annual, or quarterly basis, for 2021, data compiled with Argaam showed.

The Saudi-listed firm reported net earnings of SAR 185 million for the first nine months of 2023, rising nearly 16% year-on-year (YoY), on a SAR 29 million increase in gross profit and higher revenue.

The company also cut operating expenses by SAR 3 million, primarily on lower sales and distribution expenses. Additionally, revenue from GASCO share in associates rose by SAR 5 million, and the cost of finance dropped by approximately SAR 2 million.

The Central region accounted for the highest revenue during the first nine months of 2023, marking a growth of 18% to reach SAR 632.9 million from SAR 538.2 million in the year-earlier period. The Western region followed with SAR 613.1 million.

Gas Solutions, a wholly owned subsidiary of GASCO, reported SAR 47.3 million revenue, a jump of 26% YoY during the same period.

GASCO generated 9% higher revenue YoY in 2022 to SAR 2.08 billion. Net profit rose 6% YoY to SAR 214 million, as gross profit jumped by SAR 24 million, backed by higher revenue and a SAR 10 million decline in operating expenses.

GASCO underpinned a number of initiatives that helped improve operating and cost efficiency.