Dubai: Revenues for the Dubai toll-gate operator Salik hit Dh2.1 billion in 2023, which comes as an 11.4 per cent increase from higher traffic numbers and all-round gains for the Dubai economy.
Net profit was at Dh1.09 billion against Dh1.32 billion in 2022. But Salik in a statement said: “Comparison of profitability from one year to another may not accurately reflect the performance on a like-for-like basis due to changes in operating structure and cost profile.”
Salik's dividend plan, detailed at the time of the IPO, is to give out 100 per cent of the profit. (On DFM, the stock is trading 0.8 per cent higher at the end of the first 60 minutes, at Dh3.42. The 52-week high is Dh3.72. Salik has gained more than 20 per cent over the 12 months.)
The performance and profitability has improved year-on-year during the post carve-out period
Not a like-for-like comparison
From July 1, 2022, Salik started operating as a separate legal entity, holding a 49-year concession from RTA. “This resulted in new costs such as a variable concession fee, amortization of upfront concession fee, finance costs on borrowings, transitional services expense and others, which did not exist prior to July 2022,” the company added.
“The performance and profitability has improved year-on-year during the post carve-out period, as evident from the fact Salik achieved a net profit of Dh1.09 billion, which includes net profit of Dh542 million for second-half of 2023 as compared to Dh529 million in second-half of 2022.”
Going forward, Salik will be getting higher incoming numbers from the two additional toll-gates opening in Dubai later in the year, which will be on two hyper-busy thoroughfares. Another major revenue push will come from the association with the operator of The Dubai Mall, whereby Salik will oversee the billing of the visitors streaming into and out of the destination.