Care says cash flow needs reviewed before dividend recommendation

Logo of National Medical Care Co.

National Medical Care Co. (Care) said that cash flow needs are reviewed based on its budget and strategic initiatives before making a dividend recommendation.

In response to a question from Argaam during the discussion of the Q4 2021 results, the company said that any proposal for the cash distribution decision will be presented to the board of directors and announced on the Tadawul website.

Care CEO Abdulaziz Al Obaid noted that negotiations with the General Organization for Social Insurance (GOSI) are ongoing for the contract renewal, adding the delay is due to its merger with the Public Pension Agency (PPA).

He expressed optimism about the renewal of the contract with the organization.

The CEO added that the company obtained the necessary approvals from the Ministry of Municipal, Rural Affairs and Housing to start the expansion of the National Care Hospital.

He pointed out that the firm is currently waiting for the approval of the Ministry of Health, which will be announced as soon as the final approvals are obtained.

Outpatient and emergency visits at the National Care Hospital and Riyadh Care Hospital rose 44% and 33%, respectively, during Q4 2021, compared to the same quarter a year earlier, Al Obaid said. The average occupancy rate at both hospitals reached 76% in Q4.

Meanwhile, he indicated that the number of operations decreased in Q4 2021, compared to the same quarter of 2020, with the largest percentage of the decline at the National Care Hospital.

Care reported a net profit after Zakat and tax of SAR 136.4 million for 2021, a 40% increase from SAR 97.3 million in the previous year. Q4 results stood at SAR 36.7 million, according to data compiled by Argaam.