Abu Dhabi: Al Yah Satellite Communications Company will pay an interim cash dividend of 8.23 fils per share, equivalent to Dh201 million in total for the first half of 2023, it said on Wednesday.
To be eligible for the dividend, investors must purchase shares no later than September 27, 2023, or be shareholders of record as of October 2, 2023. Interim dividends will subsequently be paid by October 16, 2023 to all eligible shareholders.
On an annualised basis, the group is on track to deliver a dividend of at least 16.46 fils per share, equivalent to Dh402 million in total for the full 2023 financial year. This represents an increase of 2 per cent over the prior year and reinforces Yahsat’s commitment to deliver attractive shareholder returns.
This also implies an annualised dividend yield of almost 6.5 per cent for 2023, based on the latest share price.
As per the group’s shareholder-approved policy, the second and final dividend for 2023 is expected to be paid in May 2024, subject to the approval of the Board of Directors and shareholders.
Musabbeh Al Kaabi, Chairman of Yahsat, said: “Following an impressive set of first half financial results, one of the strongest balance sheets in the industry and substantial contracted future cash flows of approximately $1.9 billion , Yahsat continues to differentiate itself amongst UAE listed stocks, delivering one of the highest dividend yields available today. The board remains committed to a progressive dividend that grows by at least 2 per cent each year, paid out semi-annually, underpinned by a pipeline of promising growth opportunities. As the global space industry embarks on a new phase of possibilities, Yahsat remains the only listed stock in the region offering investors exposure to this sector.”
Ali Al Hashemi, Group CEO of Yahsat, said: “Yahsat is entering a new phase of growth. Our Thuraya-4 NGS satellite remains on track for launch in the first half of 2024 and we have commenced procurement of the Al Yah 4 and Al Yah 5 satellites with the signing of an Authorization-to-Proceed (ATP) with Airbus earlier this year. In parallel, we are in advanced negotiations with the UAE government to secure another long-term contract that would significantly increase and extend our backlog of contracted future revenues beyond 2040, further reinforcing a progressive dividend and long-term growth story. By advancing our partnership with Bayanat to launch a constellation of Earth Observation (EO) satellites in Low Earth Orbit (LEO), we expect to complement further our diverse solutions portfolio offered through our fleet of Geosynchronous Equatorial Orbit (GEO) satellites. Yahsat remains in a strong financial position and we are excited about the future.”