Skip to content Skip to Search
Skip navigation

Kingdom Holding plans $267m dividend despite profit drop

By Pramod Kumar
Unsplash.com/Hala AlGhanim
Net profit dropped to SAR1.01 billion last year, compared with SAR6.95 billion a year ago

Kingdom Holding Company (KHC) plans to distribute a dividend of more than SAR1 billion ($267 million) for 2023 despite profits falling by 85 percent.

The board of the investment company, founded by Saudi billionaire Prince Alwaleed Bin Talal, proposed a 2.8 percent cash dividend, totalling SAR1.03 billion, for 2023, subject to shareholders approval.

Net profit dropped to SAR1 billion ($270 million) last year, compared with just under SAR7 billion a year ago.

Person, Electronics, Mobile Phone

Newsletter
Get the Best of AGBI delivered straight to your inbox every week

The decline was attributed to a one-off gain in the sale of half of its stake in Four Seasons Holdings in 2022, but no such gain was recognised in the current year, the company said in a statement to the Saudi stock exchange.

KHC reported increased financial charges and operating costs in the hotel and other sectors, in addition to a decline in dividend income.

Revenue climbed 8.5 percent year on year to SAR2.7 billion, driven by a rise in hotels and other operating revenues. 

Earnings per share fell to SAR0.27 in 2023 from SAR1.88 in 2022.  

In November 2023, the company increased its investment in Citigroup after buying a $450 million stake from Prince Alwaleed.

The deal raised Kingdom’s stake to 2.2 percent from 1.63 percent.

The company signed a SAR2 billion joint venture in October 2023 with Red Sea Global to develop and own a Four Seasons resort at the Red Sea giga-project.

In 2022, the prince sold a 17 percent stake in KHC to Saudi Arabia’s sovereign wealth fund, the Public Investment Fund.

Latest articles

STC wants to consolidate the mobile tower market

STC approves PIF purchase of telecom company

Shareholders of Saudi telecom giant STC have approved plans to create a new telecommunications infrastructure company in which the Public Investment Fund will have a 51 percent stake valued at SAR8.7 billion ($2.3 billion).  Under the deal, the STC-owned Telecommunication Towers Co. Limited (Tawal) will become a PIF subsidiary through a merger with Golden Lattice […]

Flavio Cattaneo of Enel, of which Endesa is a subsidiary, and Mohamed Jameel Al Ramahi at the signing of the deal

Masdar buys stake in Spanish utilities company Endesa

The UAE’s state-owned clean energy company Masdar has agreed to acquire a minority stake in Spanish electric utility business Endesa to partner for 2.5 gigawatts (GW) of renewable energy assets in Spain. Under the agreement, subject to regulatory approval, Masdar will invest nearly $890 million to acquire a 49.99 percent stake in Endesa, with an […]

UAE markets Hong Kong

UAE capital markets partner with Hong Kong exchange

The Hong Kong Stock Exchange (HKSE) has added the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) to its roster of recognised marketplaces. The move opens the door for UAE-based companies to pursue secondary listings on one of Asia’s premier financial markets. It also follows the inclusion of the Saudi Exchange (Tadawul) […]

Person, Worker, Adult

Aramco and PIF invest in Saudi-Chinese steel venture

Saudi Aramco and the Public Investment Fund have doubled their investment in a steel plate joint venture with a Chinese company to $500 million. The two Saudi companies each own 25 percent shares in the new venture in Ras Al Khair industrial city, Bloomberg reported, quoting a statement published on the Chinese stock exchange. Chinese […]