Basrec to pay 50pc cash dividend

MANAMA: Bahrain Ship Repairing and Engineering Company (Basrec) shareholders have approved a cash dividend of 50 per cent of the share capital or 50 fils per share amounting to BD990,000 for the year ended December 2019.

The announcement follows the annual general meeting at the Gulf Hotel yesterday where chairman Fawzi Kanoo told shareholders that 2019 was an extraordinary year for Basrec in contrast with market context that is still difficult for the ship repairing industry.

It achieved turnover of BD8,333,591 in 2019 and net profit of BD3,075,110.

The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards and the impact due to adoption of the new standards has been disclosed, the board said.

On prospects for the company in 2020, Mr Kanoo said the global economic outlook appears to be improving but remains challenging.

“However, we believe Basrec is well equipped to ride out the current downturn cycle and be poised for the upturn.”

According to him, 2020 is expected to be significant for the company in terms of positive changes in the world trade.

“The biggest challenge of the ship repair sector is heavy competition from new yards that have gained momentum in their operation.

“The owners demand speedier turnaround times on tighter budgets as competition levels are higher,” added Mr Kanoo.

He said yards have become increasingly demanding for the business as the available business opportunities are shared amongst newcomers and old players.

“To face this challenge we need to move for a cost-effective production process and lowering of overhead costs.”

The extraordinary general meeting saw approval of the amendment of the articles of association, Article (5) to add ‘Service activities incidental to water transportation – Management and Operation of Ports and Private Jetties’ to the company activities.

Also approved was the addition of manufacture of electric motors, generators, transformers and electricity distribution and control apparatus to Technical Engineering and Marketing Services (TEAMS-Bahrain).

Source: http://www.gdnonline.com/Details/787689