Board Resolutions held on 13 Feb 2014

16/02/2014 10:44 AST

Al Kamil Power Company SAOG (the "Company") is pleased to advise the investors' community that the Board of Directors met today, the 13 February 2014, at 2.30 pm and the following important matters were discussed:

1- The Board of Directors approved the Company's audited financial accounts for the year 2013. The Company has earned a net profit of RO 3.129 million (US$ 8.136 million) for the year 2013. The net profit for the year equates to earnings per share of 325 Baizas (US$ 0.85).

2- The Board of Directors has proposed a distribution of a cash dividend for 2013 of 10% on the paid up capital of RO 9.625 million to be paid to the shareholders of the company who are on the shareholders' list registered with Muscat Depository & Securities Registration Co SAOC as at 29 July 2014 subject to the same being confirmed at the Annual General Meeting to be held on 16 March 2014.

3- Oman Power and Water Procurement company SAOC (OPWP) has communicated to the Company the possibility of extending the PPA of Al Kamil Power Company up to the end of 2020. The negotiations with OPWP on the terms and conditions in this respect have commenced. AKPC will remain actively and constructively engaged in this process with a view of extending its PPA in a manner which is beneficial to all stakeholders.

4- The income tax assessment order passed by the Oman's Tax authorities for the year 2007 is against the accepted accounting standards. It be noted that Oman Tax Law provide that financial statements submitted along with the income tax return are prepared in accordance with the International Accounting Standards - now IFRS), and such financial statements are audited by Independent Auditor. Objection letter against the assessment order has been filed and the management, as advised by the tax consultant, is confident of succeeding in this endeavour. Further, the interpretation by the tax authorities of the Royal Decree 54/2000 (which grants 5 years' tax exemption to the Company) by not allowing indefinite carry forward of tax losses incurred by the Company during tax exempt period is also being contested and it is proposed to seek clarification on the Royal Decree. The final outcome in this respect would be known during the course of the year 2014. The financial statements for the year 2013 have been prepared, in consultation with Company's lawyers and tax consultants, on the postulation that the Company has a fair chance in succeeding in the above-noted tax matters

Stock Market News