Jazeera Airways results

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By TESTCustomwebLP TESTCustomwebLP April 2, 2015 20:46

Jazeera Airways results

Jazeera Airways reported a 4.9% increase in revenue for 2014 to KD68.8 million ($228.8 million) and although net profit rose 4.4% to KD17.4 million, it was affected by a “one-time non-recurring loss leading to a net loss of KD2.88 million for the year”. The net loss was reportedly caused by the sale of aircraft to UK-Chinese joint venture, Jazeera Airways Group, for less than their booked value.

Jazeera has also recommended record dividends and payments to shareholders totaling up to KD50 million in the form of special dividends for 2014 and a share buyback program.

Jazeera Airways Group Chairman, Marwan Boodai, said: “Our recommendation today to distribute up to KD50 million in shareholder payments reflects our strong performance last year and the successful divestment of the leasing business. The board is confident in the continued future cash flow and the growth of our airline.”

KD20 million is to be paid following shareholder approval by the upcoming Annual General Meeting of Shareholders that is planned for mid-May 2015. The airline shares buyback program payments comprise: Up to KD 30 million, which include KD22 million for the purchase of 220 million shares out of the total 420 million outstanding issued shares at the nominal price of 100 fils (KD0.1), and up to KD8 million in 2015 earnings and other reserves that are required by law to be distributed prior to executing the planned share buyback program.

Jazeera Airways Group’s share buyback program will be the first voluntary share buyback program exercise in Kuwait based on the new share buyback procedures by Kuwait’s new Commercial Companies Law (97/2013) and its executive regulations. The board commits to executing the dividends and the payouts as soon as shareholder and regular approvals are secured.

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By TESTCustomwebLP TESTCustomwebLP April 2, 2015 20:46