Manama: Bahrain Aluminium Extrusion Company (Balexco) will distribute five per cent cash dividend for 2015 to its shareholders as well as issue one bonus share for every 20 held, that is 5pc of the paid-up capital.
The recommendations were submitted by the board of directors to the company’s annual general assembly where shareholders approved the proposals.
The meeting was chaired by board member Abdul Nabi Naser Salman on behalf of the chairman.
Mr Salman said despite the company facing several challenges, it was able to achieve remarkable increase in its net profits which reached up by 6pc to BD1,703,000 in 2015 compared with the previous year.
He said the company in 2014 faced the problem of truck congestion at King Fahad Causeway, which resulted in a delay of deliveries to customers, particularly to the Saudi market.
Moreover, the slowdown in the construction sector had exacerbated such difficulties.
In 2015, he pointed out that the sharp decline in oil prices and the consequent austerity measures taken by the government had a severe negative impact on the company’s markets and sales.
The slowdown in the Chinese economy, the fluctuations of the stock market, as well as the decrease in the added value of the raw materials had also negative effects on the company’s performance.
Several promotional plans were proposed, including the establishment of the painting powder unit which is being operated by vertical technology, and the development of one of the company’s four pistons, to meet the increasing needs of a wide range of chops, including the light thickness chops which have larger demand in the aluminium market.
The company also plans to recruit professionals, who are capable to fill top positions, inside as well as outside Bahrain.
Mr Salman revealed that the Middle East Technical Company, which is the sister company of Balexco, is progressing steadily and contributing greatly to the company’s operational and financial resources.