Title :

Dividend Distribution Policy

Content :

1.     Introduction

The purpose of this Policy is to ensure that Raysut Cement Company SAOG (The Company) Comply with Muscat Stock Exchange Circular 3/2025 dated 5th February 2025 regarding Dividend Distribution Policy guidelines for Listed Companies:

-       All publicly listed Joint Stock Companies in Muscat Stock Exchange must prepare a dividend distribution Policy.

-       Companies must disclose the aforementioned policy on its official website and on MSX website.

2.     Objective

The objective of this Policy is to provide clarity to stakeholders on the dividend distribution framework to be adopted by RCC. The Board of Directors shall recommend dividend in compliance with:

1.     this Policy,

2.     the Articles of Association of the Company,

3.     the provisions of the Commercial Companies Law,

4.     relevant Directives / Orders published by Financial Services Authority (FSA) and other applicable legal provisions.

This policy sets out the principles guiding the distribution of dividends by the Company in line with applicable laws of the Sultanate of Oman, Financial Services Authority (FSA) regulations, and the Company’s Articles of Association.

3.       Interval

The Board shall evaluate dividend declaration interim or annually, subject to availability of distributable profits, based on:

-       Net profit after statutory reserves.

-       Free cash flow position.

-       Covenant restrictions, if any, under financing arrangements

 

 

4.       Dividend Distribution Strategy

·       Dividend, if declared, may be in the form of cash dividend or stock dividend (bonus shares), depending on liquidity position.

·       Interim dividends may be considered when cash flows are stable and adequate.

5.       Company’s Financial Position

Companies Financial Position is updated MSX website in line with FSA guidelines.

6.       Growth Strategy

The Company’s growth strategy aims to balance the distribution of profits to shareholders with the need to reinvest in the business to support long-term value creation. The Board of Directors will consider the Company’s capital expenditure plans, expansion opportunities, debt obligations, and working capital requirements when recommending dividend distributions. Where appropriate, a portion of profits may be retained to fund future growth initiatives, strategic investments, or to strengthen the Company’s financial position.

7.       Industry Update

·       Oman’s Economic outlook is positive, driven by increased Gas production, economic diversification and Investments in renewable energy and green hydrogen.

·       Significant Investments in industrial and infrastructure projects as part of Vision 2040 is crucial to boosting cement demand.

·       However, risk to this outlook include oil market volatility, global financial conditions, climate change risks and geopolitical tensions.

8.       Dividend Distribution plan

Distribution of dividends will be done through Muscat Depository Services after the same is approved at the AGM.

9.       Dividend Announcement Placement Plan

Dividend distribution announcement will be placed on MSX website after BoD recommendation subject to AGM Approval. It will also form part of AGM Notice/ Agenda.

10.    Dividend Approval

The Board will review and recommend the dividend per share annually and will be approved in the Annual General Meeting.

11.      Final Provisions

• This policy shall be reviewed periodically by owner of this policy at least once every three years or upon significant organizational change or regulatory changes and amended as necessary to reflect changes in regulations, financial position, and business environment after submitting the changes to BoD for approval.
• for more information, clarification and dividend related information, please approach the company’s Investor Relations Officer, Contact Details:

 

 

Raashid Ali

Investor Relations Officer

Tel: +968 9139 2922
Email: [email protected]