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.”
"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.”
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.”