Title :

OQ Gas Networks Dividend Policy

Content :

OQ Gas Networks Dividend Policy

 

 

 

1.      Objective:

 

This Dividend Distribution Policy (“Policy”) establishes the framework adopted by OQ Gas Networks SAOG (“the Company”) for determining, declaring and disclosing dividends to shareholders, in compliance with the laws and regulations including , the Commercial Companies Law (Promulgated by Royal Decree18/2019) and Muscat Stock Exchange (MSX) Circular No. 3/2025 and Financial Services Authority Circular No. E/42/2025.

 

2.      Scope:

 

This policy applies to all ordinary dividend distributions declared by the Company in respect of its shares listed on the Muscat Stock Exchange.

 

The policy governs the annual dividend distributions and any other cash distributions to shareholders for the Financial Year 2026 as recommended by the Board of Directors and approved by the shareholders at the Annual Ordinary General Meeting.

 

 

3.      Key determinations for dividend distribution:

 

A.      Dividend shall be paid to shareholders pursuant to the applicable laws, regulations and circulars issued by the Financial Services Authority.

 

B.      The Company’s Board of Directors shall determine the amount of dividend proposed, considering various factors including, but not limited to:

 

·        The Company’s net profits accumulated retained earnings, and other distributable reserves.

·       The Board of Directors’ allocation of 10% of the net profits for each financial year to form a legal reserve until it reaches at least one-third of the capital.

 

 

4.      Dividend Recommendation:

 

For Financial Year 2026, the Board intends to recommend a total cash dividend of 11.2 baisa per share, subject to availability of distributable reserves, the Company’s solvency and liquidity position, and shareholder approval at the AGM.

 

 

5.      Eligibility:

 

Shareholders are eligible to receive dividends if they are registered in the Muscat Clearing and Depository records as of the entitlement date.

 

 

 

6.      Distribution:

A.      Including a separate item on the agenda of the Annual Ordinary General Meeting to approve the proposed cash dividend distribution for consideration and decision by the shareholders.

 

 

B.      Implementing the resolution of the Annual General Meeting regarding the distribution of dividends to shareholders registered in the Company’s records as of the entitlement date, within a period not exceeding seven (7) working days from entitlement.

 

 

 

 

 

7.      Dividend Re-investment option:

 

A.      Where aligned with the company's expansion strategy and growth opportunities, the company may offer divided re-investment options to its shareholder. Shareholders who choose to opt for the option shall be issued shares equivalent to eligible dividend distribution.

 

 

B.      The Company will obtain the necessary approvals from shareholders, the board of directors, regulators, and any relevant authorities before offering the options to shareholders.

 

 

 

8.      Policy approval and date(s):

 

This policy has been reviewed and approved by the Board of Directors. The policy is valid for a period of one year, after which the Board of Directors may issue a revision of the policy.