Title :

Barka Desalination Company S.A.O.G. Listed on Muscat Stock Exchange

 

Dividend Distribution Policy Statement

Content :

Board of Directors (BOD): The Board of Directors (“BOD”) of Barka Desalination

Company S.A.O.G. (“BDC” or the “Company”), a company listed on the Muscat Stock

Exchange (“MSX”), has decided in its meeting on 18 February 2026 and agreed on

a decision regarding Dividend Distribution Policy.

 

1. Intent

The Company aims to provide returns to its shareholders through dividend

distributions, subject to the Company’s financial performance, liquidity position,

regulatory requirements, and prevailing market conditions.

 

2. Interval

The Company intends to distribute dividends on a biannual basis, subject to Board

recommendation and shareholder approval.

 

3. Dividend Distribution Strategy

Dividends shall be paid in the form of cash dividends.

 

4. Company Financial Position

Dividend distributions shall be made from the Company’s retained earnings, after

ensuring that:

● All financial covenants and contractual obligations are fulfilled;

● Required approvals from relevant authorities are obtained, where

applicable; and

● The Company remains in full compliance with the Commercial Companies

Law of Oman and other applicable laws and regulations.

 

Docusign Envelope ID: 432F82E4-C081-4B21-AE92-F195E6AAE876

 

5. Growth Strategy

The Company’s current capital management strategy prioritizes dividend

distribution, while maintaining adequate resources to support operational

continuity and long-term sustainability.

 

6. Industry update

Water security is a strategic priority in the Sultanate of Oman, driven by climatic

conditions, population growth, industrial development, and increasing demand

from agricultural and urban sectors.

Barka Desalination Company operates under a contractual framework, supported

by a long-term Water Purchase Agreement entered into in 2016 for a duration

of 20 years, which provides stable and predictable cash flows.

 

7. Dividend Distribution Plan

The Company intends to distribute dividends in the months of May and

November, provided that:

● The total dividend per share does not exceed the amount approved by

shareholders at the Annual General Meeting (AGM); and

● All regulatory, financial, and contractual requirements are satisfied.

The Company reserves the right to revise the Dividend Distribution Plan as and

when deemed necessary. Any revisions shall be disclosed on the Company’s official

website and filed with the Muscat Stock Exchange (MSX).

 

8. Dividend Announcement and Plan

Dividend-related announcements shall be:

● Published on the Company’s official website; and

● Submitted to the Muscat Stock Exchange (MSX) in accordance with

applicable disclosure rules and regulations.

 

Docusign Envelope ID: 432F82E4-C081-4B21-AE92-F195E6AAE876

 

9. Dividend Approval

All dividend distributions are subject to:

● Recommendation by the Board of Directors; and

● Approval by the shareholders at the Annual General Meeting.

 

10. Policy Rationale

The timing and quantum of dividend distributions are determined with due

consideration to the Company’s cash flow capacity, financial covenants, ongoing

operational and contractual commitments.

 

11. Additional Information (if any);

 

12. Legal Clause (if any);

 

13. Policy Amendments

The Company reserves the right to amend this Dividend Distribution Plan at any

time.

Any amendments shall be appropriately disclosed through the Company’s official

website and filed with MSX.

Docusign Envelope ID: 432F82E4-C081-4B21-AE92-F195E6AAE876

 

14. Disclaimer

This policy is intended to serve as general guidance on the Company’s approach to

dividend distributions and does not constitute a binding commitment to declare

or pay dividends in the future.

The Board of Directors retains full discretion to recommend, declare, amend, or

suspend dividends as circumstances may require.

 

15. Contact Information

Investor Relation Officer: Raiya Alrawahi

Email: [email protected]

Mobile: 96573353

 

For Barka Desalination Company S.A.O.G

 

Asim Al Rashdi

Chief Executive Officer

Date:18/02/2026

 

Zain Ahmed Siddiqui

Chief Financial Officer

Date:18/02/2026