SGS to withhold cash dividend for H2 2019 as a precautionary measure

Saudi Ground Services Co.’s (SGS) board of directors recommended withholding cash dividend for the second half of 2019, the company said in a bourse statement.

The move is a precautionary measure to support the financial position and cash flow of the company, as well as to ensure the continuity of business, which was impacted by the decrease of airports’ ground services activities due to the government measures to curb the spread of the coronavirus, including the suspension of international flights and the decrease of domestic flights.

The recommendation is pending approval from the company’s general assembly.

The Saudi-listed firm previously expected its revenues and profits for the year 2020 to be negatively impacted after Saudi Arabia temporarily suspended all international flights for two weeks starting from March 15, 2020 in an effort to prevent the coronavirus outbreak.