SAIC posts highest profit on record in 2021, pushes for listing affiliates in Saudi market: CEO

Saeed Almoeather, CEO of Saudi Advanced Industries Co. (SAIC)

Saudi Advanced Industries Co. (SAIC) reported the highest profit and recommended the highest cash dividend since inception in 2021, CEO Saeed Almoeather said.

He added that SAIC’s successful investments “have started to pay off”, expecting this strong performance to continue going forward.

The company’s statutory reserve and retained earnings reached solid levels, Almoeather told Argaam in a phone call, noting that these levels underline SAIC’s strong financial position and allow more growth and expansions in the future.

Almoeather added that the company’s investment in the subsidiary, Obeikan Glass Co., amounts to SAR 128 million, or SAR 13.33 per share. The current stock price of more than SAR 95 leads SAIC’s investment value to surpass SAR 900 million. Accordingly, this will be reflected positively on the company’s financial position. In addition, SAIC’s share in Obeikan Glass’ 2021 dividends amounts to SAR 9.6 million, he added.

The top executive forecasts the glass manufacturer to maintain dividend payment for 2022, thanks to its strong financial position, the pick-up in its product prices, robust cash flows and ability to fulfill obligations.

SAIC is working with its partners to fulfill the requirements of the competent authorities to transition Obeikan Glass to the main market, Almoeather affirmed.

SAIC is working with its shareholders to fulfill the requirements of the competent authorities to transition Obeikan Glass to the main market, Almoeather affirmed.

Meanwhile, SAIC holds 31.62% of Deutsche Gulf Finance, which paid out annual dividends to its shareholders two years ago. Looking ahead, the real estate financing company is expected to maintain dividend payments. SAIC is also working with the company’s shareholders on listing its shares in the Saudi market.

SAIC CEO also highlighted the importance of aggrandizing shareholders’ equity through pushing for the listing of affiliates in the Saudi market, noting that this move will have a positive impact on the listed company and its shareholders. The new listings will also deliver capital gains and achieve other privileges for SAIC, and help it venture into new projects.

SAIC aims to continue its interim or annual dividends, if possible. The company aims to enter into other sectors with higher returns to diversify its investments and reduce risks. The company targets investments in the health, education, retail sectors, among others, Almoeather said, pointing out that SAIC is now studying and evaluating available investment opportunities in various sectors.

Replying to a question about selling SAIC’s holding in Alsalam Aerospace Industries, Almoeather said an announcement was earlier made on reaching no agreement with the other party. “The company operates in a vital sector. We are optimistic about this investment, and we will do the utmost effort to achieve the target goals,” he concluded.