Canadian Medical Center H1 2021 profit decline 'normal' on one-off expenses: Chairman

Khalid Al-Ammar, Chairman of Canadian Medical Center

Canadian Medical Center's (CMC) profit decline in H1 2021 is "normal" due to the one-off expenses of a long-term project with Saudi Arabian Oil Co. (Saudi Aramco) and listing the company on the Nomu - Parallel Market, according to Chairman Khalid Al-Ammar.

In a telephone interview with Argaam, Al-Ammar said that the expenses pressured profit despite 1% revenue growth.

The company signed a contract with Saudi Aramco to provide medical services for five years, the Chairman said, adding that it started to incur the expenses since the beginning of 2021.

"The project was launched in July 2021, and the relevant financial impact is expected to show in the second half of 2021," Al-Ammar said.

Commenting on the dividend policy for 2021 and 2022 at SAR 3 a share, the Chairman said the company reports good profit growth and seeks to boost it constantly to continue distributing dividends.

He added that the decision was taken based on long-term contracts with local and international companies, and profit margin growth. "In addition, the company's specialty is distinct and needed by all oil companies."

Al-Ammar indicated that the retained earnings reached more than SAR 17 million in H1 2021, and the surplus after dividend payout exceeds SAR 5 million.

Talking about the company's performance in H2 2021, he said the new projects started in July 2021, and there is significant development in revenue, which contributes to boosting profitability.

The Tadawul-listed firm reported a net profit and Zakat and tax of SAR 5 million in the first six months of 2021, down 41% from SAR 8.4 million in the same period a year ago.

The board of directors recommended a 15% cash dividend for the first half of 2021, at SAR 1.5 per share, amounting to SAR 11.55 million, according to Argaam's data.