Please register to access this content.
To continue viewing the content you love, please sign in or create a new account
Dismiss
This content is for our paying subscribers only

Business Markets

UAE satellite firm Yahsat sets 2022 dividend at Dh393m after revenues rise to Dh1.6b

2022 dividend works out to 6%, Yahsat plans to raise payout by 2% annually



Yahsat's contracted future revenue is quite substantial, at Dh7.3 billion, or '4.6 times annual revenue for 2022'.
Image Credit: Supplied

Dubai: The UAE satellite maker Yahsat beamed a 6 per cent increase in 2022 revenues to Dh1.6 billion ($433 million), while net income dipped to Dh242.2 million from Dh256.9 million.

Yahsat’s Board of Directors is recommending Dh393 million ($107 million) as 2022 dividend payout, or Dh16.12 fils a share. That’s 2 per cent higher over 2021. (Fifty per cent of this was paid as interim in October last and the rest by May 2023.)

“In a year of continued transformational change for the satellite industry and against a backdrop of global economic headwinds and tighter financial conditions, the Group continues to deliver impressive top-line revenue growth, a superior margin and healthy cashflows, positioning it to sustain and grow its dividend and invest in organic and inorganic growth opportunities,” said Musabbeh Al Kaabi, Chairman.

“The true test of a company's performance, however, is its ability to deliver on its promises, and I'm pleased to see Yahsat’s management team firmly meet or exceed the financial targets set out in our first full year as a publicly traded company following the successful IPO in July 2021.”

High yielding

"Based on Yahsat’s current share price, (it) implies a dividend yield of more than 6 per cent - one of the highest yields amongst UAE listed equities,' said Al Kaabi. "We expect to continue growing Yahsat’s dividends by at least 2 per cent per year underscoring the Board’s confidence in Yahsat’s future growth potential and long-term visibility of cashflows.”

Advertisement

That confidence stems from the confirmed contracts Yahsat has on its books. At Dh7.3 billion, this is 4.6 times the 2022 top-line. "We remain confident in the Group’s underlying health and resilience, which is supported by a robust balance-sheet and a substantial contracted future revenues of approximately Dh7.3 billion ($2 billion)," the Chairman added.

"This financial strength will help drive our future ambitions as we pursue a range of promising growth opportunities across IoT, government, maritime and enterprise data solutions, playing to our many strengths and driving sustainable long-term growth.”

Advertisement