Dividend Distribution Policy
Title :
Dividend Distribution Policy
Content :
26TH February 2026
After Compliments,
Board Resolution: The Board of Directors of Al Maha Petroleum Products Marketing Company SAOG, decided at its meeting held on 26 of February, 2026 approval of the dividend distribution policy.
Subject: Dividend Distribution Policy
This Dividend Distribution Policy (“Policy”) is issued by the Board of Directors of Al Maha Petroleum Products Marketing SAOG in accordance with Muscat Stock Exchange (MSX) Circular No. (3/2025) dated 05 February 2025.
This Policy forms part of the Company’s Corporate Governance framework.
1. Objectives of the Policy
This Policy aims to:
· Establish a transparent and consistent framework for dividend distribution.
· Ensure fair and equitable treatment of all shareholders.
· Align dividend decisions with regulatory requirements and prudent financial management.
· Enhance disclosure, accountability, and governance standards.
2. Authority and Approval
· The Board of Directors is responsible for reviewing the Company’s financial results and recommending dividends.
· Any dividend distribution shall be approved by shareholders at the Annual General Meeting (AGM).
| 3. Forms of Distribution The Company may recommend the following forms of distribution: a) Cash Dividends Dividends payable in cash to shareholders. b) Bonus Shares (Stock Dividends) The Board may recommend the issuance of bonus shares, subject to: · Availability of distributable reserves or retained earnings as permitted by law; · Compliance with the Commercial Companies Law and FSA regulations; · Approval by shareholders at the AGM; · Regulatory approvals, where required. Bonus shares, if approved, shall be issued proportionately to shareholders based on their shareholding as of the approved record date. c) Dividend Re-Investment Plans (DRIP); d) Any other form of dividend distribution permitted under the laws and regulations.
4. Dividend Frequency · Distributions will generally be considered on an annual basis. · Interim distributions may be considered if permitted under applicable laws and regulations.
5. Legal and Financial Conditions Dividends or bonus shares may only be declared after: · deduction of expenses and provisions; · allocation to statutory reserves as required by law; · adjustment for accumulated losses, if any. No distribution shall be made if it would: · affect the Company’s solvency or liquidity; · breach debt covenants or financial obligations; |
contravene the Commercial Companies Law or FSA regulations.
6. Factors Considered by the Board
The Company does not commit to a fixed payout ratio. No shareholder has a guaranteed right to dividends or bonus shares, as distributions remain subject to Board recommendation and shareholder approval.
In recommending dividends or bonus shares, the Board shall evaluate:
a) Financial Performance
· Net profit after tax
· Earnings sustainability
· Cash flow generation
b) Liquidity and Capital Position
· Working capital requirements
· Cash reserves
· Capital adequacy
c) Strategic and Growth Requirements
· Capital expenditure plans
· Expansion and diversification initiatives
· Long-term corporate strategy
d) Debt and Obligations
· Outstanding borrowings
· Repayment schedules
· Compliance with covenants
e) Economic and Industry Conditions
· Market volatility
· Regulatory developments
· Competitive landscape
| 7. Disclosure and Transparency In accordance with the requirements of the Muscat Stock Exchange and the Financial Services Authority, the Company shall disclose: · Date of the Board meeting approving the recommendation; · Type of distribution (cash dividend and/or bonus shares); · Dividend per share (in baiza), if applicable; · Total dividend amount (in OMR); · Bonus share ratio (e.g., 1 share for every X shares held), if applicable; · Record date and AGM date; All disclosures shall be made in the official disclosure platform of the Muscat Stock Exchange, within prescribed regulatory timelines and in accordance with applicable regulatory requirements.
8. Payment and Execution · Cash dividends shall be paid within the timeframe prescribed by the FSA following AGM approval. · Distribution shall be executed through Muscat Clearing & Depository SAOC. · Bonus shares, if approved, shall be credited to shareholders’ accounts through the same clearing system · Only shareholders registered as of the approved record date shall be entitled to receive distribution
9. Policy Review and Amendments · This Policy shall be reviewed periodically by the Board. · Non-material amendments may be approved by the Board. · Material amendments affecting shareholder rights shall require shareholder approval at the AGM. |
All amendments shall be disclosed in accordance with regulatory requirements.
10. Disclaimer
- This Policy does not guarantee dividend or bonus share distributions in any financial year.
- All distributions are subject to Board recommendation and AGM approval.
- Forward-looking expectations may vary due to economic, financial, operational, or regulatory factors.
- This Policy shall be interpreted in accordance with applicable Omani law and FSA regulations.
11. Contact Information
For inquiries regarding this Policy, shareholders may contact:
Name : Mr. Saleem Hassan Al Balushi,
Designation : Investor Relations Officer (IRO)
Phone : 24610292
Email : [email protected]
Website : www.almaha.com.om
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