Riyadh – Mubasher: Saudi Airlines Catering on Tuesday said its net profits decreased by 7.6% year-on-year in the second quarter of 2017.

Net profits declined to SAR 131.02 million in Q2-17, from SAR 141.76 million in Q2-16, according to a statement to the Saudi Stock Exchange (Tadawul).

Quarter-on-quarter, profits rose 7.9%.

The Tadawul-listed firm attributed the drop in its year-on-year net profits to an adjustment with negative impact of SAR 3.5 million which was made in the Zakat and tax provision related to prior years.

Saudi Airlines Catering also attributed the profit decrease to a decline in catering sales to other airline firms, added to a drop in the sales of airline equipment to Saudi Airlines Est. (Saudia).

Sales fell 3.4% to reach SAR 551.1 million in Q2-17, compared to SAR 570.4 million in the year-ago period.

In the first half of 2017 net profits retreated 7.3% to SAR 252.4 million, from SAR 272.2 million in H1-16.

Sales levelled down 3.95% to reach SAR 1.08 billion in H1-17, compared to SAR 1.13 billion in the corresponding period in the year earlier.

The Saudi-based company’s board on Monday recommended distributing cash dividends of SAR 1.5 per share for Q2-17.

Total distributions amounted to SAR 123 million, making up 15% of the share’s par value, after Zakat and before income tax.

Dividends will be distributed among shareholders of record by the end of the second trading day following the maturity date.

Eligibility will be for shareholders registered in the group’s register at the depository centre at the end of trading on 21 August, while distributions will take place on 10 September through the Saudi British Bank (SABB).

By 12:09 pm KSA time, the stock increased 4.03% to SAR 85.80.