Jazeera Airways Group Report 11.7 Percent Increase in Year-to-Date Net Profit for Q3 Earnings
Wednesday, 04 November 2015
Kuwait - Jazeera Airways today announced its third quarter financial results. The company recorded a 2.4 percent rise in net profit for the quarter, bringing its nine-month net profit to KD14.5 million, reflecting an 11.7 percent increase over the same period last year.
Marwan Boodai Jazeera Airways chairman, said: “We are pleased with this quarter’s results and we forecast the last quarter to be in line with expectations.
As for our previously announced capital reduction scheme and shareholder payout program we are well on track and expect the last payout by early December.”
Last month, the board of directors obtained shareholder approval to reduce the company’s capital following the exit from the aircraft leasing business last January. Today, the company is in the process of reducing capital from KD 42 million to KD 20 million through a share buyback program of 220 million shares at the nominal share price of 100 fils.
This will result in a KD 22 million shareholder payout, which when combined with the company’s special dividends payout of KD 20 million in June, and with KD 10.7 million in 2015 accumulated earnings and other reserves that are required by law to be distributed as part of the capital reduction, the company’s cash payout to shareholders in 2015 will total KD 52.7 million.
Cash payouts to Jazeera Airways shareholders in 2015: KD 52.7 million
KD 20 million in special dividends for 2014. Approved in May 2015, and distributed in June 2015.
To be distributed by year-end:
KD 22 million to buy back 220 million shares
KD 10.7 million in accumulated earnings up to June 30, 2015, and other reserves
The capital reduction process will also include the settlement of all debts held by the company, resulting in a debt-free company by year-end.
The company’s share buyback program will be the first voluntary share buyback program exercise in Kuwait based on the new share buyback procedures stated by Kuwait’s new Commercial Companies Law (97/2013).
Note: One Kuwaiti Dinar (KD) equals 3.30 US Dollar