Budget annual profit growth to 188 million riyals

The United International Transportation Company (Budget Saudi Arabia), achieved a 5.17% increase in profits. As its net profit amounted to 187.85 million riyals during 2020, compared to 178.62 million riyals in 2019, despite the decline in the company's revenues by 6.4% to 977.2 million riyals, compared to more than one billion riyals in 2019.

According to Arabiya Net, the company stated that the reason for the increase in net profit during this year compared to the previous year was the increase in the net profit of car sales, as the increase in car sales and profits led to higher profit rates in the second half. Of the year, thus compensating for the decrease in rental revenues that resulted during the period affected by the Corona pandemic.

The company explained that the reason for the decrease in revenues this year compared to last year is due to the impact of business during the Corona pandemic, as it led to the disruption of economic activities that negatively affected the revenues from long-term and short-term leasing, which was compensated by The increase in car sales and profits for this year compared to last year.

The company indicated that it has begun to recover from the impact of its business on long-term and short-term leasing activity during the pandemic period, with uncertainty about what may happen in the future in terms of developments during the pandemic, as the group's management will continue to evaluate Impact based on potential developments.

Dividends

In a separate statement, the company announced the issuance of the Board of Directors’s decision to recommend to the General Assembly to distribute cash dividends to shareholders for the second half of 2020, amounting to 88.958 million Saudi riyals, and the share of the dividend reaches about 1.25 riyals per share.

The company stated that it approved the distribution of 0.5 riyals for the first half of 2020, and the profits were deposited in the shareholders ’portfolios, so that the total recommended profits for the results of 2020 AD amounted to 124.542 million Saudi riyals.