Jazeera Airways announces record dividends for 2014

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By TESTCustomwebLP TESTCustomwebLP March 31, 2015 16:32

Jazeera Airways announces record dividends for 2014

Jazeera Airways, a Kuwait-based airline, has recommended record dividends and payments to shareholders totalling up to KD50 million ($166.4 million) in the form of special dividends for 2014 and a share buyback programme.

All payments will be executed separately in the next several months with the last payment expected to take place in August, pending regulator and shareholders approvals, the company said in a statement.

The shareholder payments recommended are special cash dividends for 2014 totalling KD20 million ($66.5 million) to be paid following shareholder approval by the upcoming Annual General Meeting of Shareholders that is planned for mid-May; and shares buyback programme payments up to KD30 million ($99.8 million), which includes KD22 million ($73.2 million) for the purchase of 220 million shares out of the total 420 million outstanding issued shares at the nominal price of KD0.1 ($.33), and up to KD8 million ($26.6 million) in 2015 earnings and other reserves that are required by law to be distributed prior to executing the planned share buyback programme.

For the full year 2014, Jazeera Airways Group’s cash balance stood at KD66 million ($219.6 million). The company expects the cash balance to rise to above KD80 million ($266.2 million) by end of 2015 – without taking into account the shareholder payments recommended today. The company’s paid up capital is KD42 million ($139.7 million).

The high-level of cash is a result of retained earnings generated by the company’s strong performance in recent years. The company’s cash position will be further enhanced with the proceeds from the sale of 15 A320s for KD148.5 million ($507 million), which is part of a strategic move to exit the aircraft leasing business and focus on Jazeera Airways, which historically generated 80% of the company’s net profit.

Marwan Boodai, Jazeera Airways Group chairman, said: “Our divestment from the leasing business came at the right time for us and our buyers. Our fleet’s new owners are getting modern assets that are already placed with airlines across the world and generating revenue from day one. We are now focused on our star performer, Jazeera Airways, which is now more nimble, asset-light, cash-rich and debt-free to pursue new opportunities to serve our customers.”

The company also had a record Q4 performance, earning pre-transaction net profit of KD3.8 million ($12.6 million), an increase of 47% from the same quarter last year. The company’s full-year revenue was KD68.8 million ($228.9 million), up 4.9% from last year, and its pre-transaction net profit was KD17.4 million ($57.9 million), up 4.4% from 2013.

However, as a result of the fleet sale, the company’s bottom line for 2014 was affected by a one-time non-recurring loss leading to a net loss of KD2.88 million ($9.5 million) for the year.

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By TESTCustomwebLP TESTCustomwebLP March 31, 2015 16:32