Saudi Electricity shareholders approve plan for SAR 3.35 bln Aramco dividend

Saudi Electricity Co.’s headquarters

Saudi Electricity Co.’s (SEC) shareholders approved the plan for the SAR 3.35 billion dividend owed to the Saudi Arabian Oil Co. (Saudi Aramco) since SEC’s inception until 2017 during the extraordinary general assembly meeting held on Dec. 27, 2020.  

This amount will be treated as a debt, in favor of the Ministry of Finance. The dividend referred to in the settlement and Mudarabah instrument signed between the company and the Ministry of Finance will be included in the financial liabilities owed to the government by the company.

Shareholders also agreed to establish and allocate a consensual reserve to pay the profit rate of the Mudarabah instrument, in accordance with percentage and mechanism mentioned in that agreement.

In addition, they authorized the board of directors to transfer funds from the company's retained earnings to form the reserve and use it in paying the Mudarabah instrument profit rate. 

Meanwhile, shareholders also approved the election of the board of directors for the upcoming three-year term starting on Jan. 21, 2021.

Among the board members are Raed N. Al-Rayes, Khalid Bin Saleh Al-Sultan, Najem bin Abdullah Al-Zaid, Rashid bin Ibrahim Sharif, and, Essam bin Alwan Al-Bayat – all elected as Saudi government representative.

Also elected are Abdul Karim bin Ali Al-Ghamdi, Walid bin Ibrahim Shukri, David Crane and Nabil bin Abdulaziz Al-Naim.