Solidere postpones dividends distribution
Focus on preserving liquidity, increasing land sales
Solidere will not distribute dividends for 2012. The General Assembly had reviewed the company’s financial statement and voted against the distribution of dividends to shareholders.
“Such a decision is subject to the availability of profits and of liquidity to pay these dividends,” said Mounir Douaidy, General Manager of Solidere. The company declared $16 million in net profits, down by 90 percent compared to the previous year. The main reason behind the drop in profits is the drop in land sales which constitute 80 percent of Solidere’s revenues.
The decision not to distribute dividends reflects the deteriorating economic situation, according to Douaidy. “This is a temporary measure. Dividends will definitely be paid in coming years. Future accumulated profits and returned earnings will allow us to do this. It’s only a question of time.”
Solidere will preserve its liquidity to pursue ongoing projects. “Our policy to deal with this situation is to expend more efforts on selling land plots to investors. Unfortunately, due to current instability, investors have fled the market,” said Douaidy.
Positive indicators in the firm’s financial statement included a nine percent increase in rental revenues and a general decrease in overhead. Douaidy said: “We will improve our income generating sources and continue efforts to reduce overhead.”
Reported by Yassmine Alieh
Date Posted: Aug 21, 2013