Yahsat's latest UAE Government contract is for a major upgrade to the existing satellite communication capabilities. Image Credit: Supplied

Dubai: The Abu Dhabi satellite company Yahsat sure is soaring – first quarter revenues are up 9.4 per cent to Dh362.5 million and that helped propel net profit to Dh73.8 million, up an impressive 26.4 per cent.

More than that, Yahsat’s contracted future revenues remain robust, at Dh8.1 billion, up by Dh642.1 million since the start of the year. The ADX-listed entity was awarded Dh908.9 million five-year managed services contract by the UAE Government for enhancing its satellite communications capabilities.

"The agreement augments the previous operations and maintenance services provided, to include technology management support, from January 2022 until the end of 2026," the company said in a statement. "This mandate reinforces Yahsat’s long-standing relationship with the UAE Government, which has existed for more than a decade, highlighting the Group’s role as the preferred partner for capacity and solutions since 2011."

Dividend flow

For 2022, Yahsat plans to issue a total dividend of Dh393.3 million, split over two payments in October and April next year. That would come to 16.12 fils a share. The dividend payout for last year came to Dh192.7 million, or 7.90 fils a share.

“Yahsat proposes to pay an interim dividend to shareholders in October 2022 and maintain semi-annual dividend payments going forward,” the company said in a statement. "Following the exceptional performance in Q4-21, Yahsat has continued building on its strong momentum in 2022. All business segments performed well, with a particularly exceptional performance in both 'managed solutions' and 'mobility solutions', which increased by 26 per cent and 45.4 per cent, respectively."

We strengthened our foundations for long-term sustainable growth, and now show contracted future revenue of Dh8.1 billion, 5.4 times our annual revenue. With almost 90% of remaining projected revenue for the current year already secured, we remain very confident in our outlook for Yahsat and reiterate our guidance for 2022

- Ali Al Hashemi, Group CEO of Yahsat