Al Yah Satellite Communications Company announced that it will amend its dividend policy. Image Credit: Supplied

Abu Dhabi: Al Yah Satellite Communications Company (Yahsat) listed on the Abu Dhabi Securities Exchange (ADX), one of the largest providers of multi-mission satellite communication services in the world, Saturday announced that its Board of Directors approved a proposal from its senior management to update its dividend policy to allow the payment of dividends on a semi-annual basis.

The proposal reflects management’s confidence in the financial strength of the business, a positive outlook on cash flow and Yahsat’s ability to fund future investments.

The proposal will be presented to all shareholders for approval during Yahsat’s Annual General Meeting (AGM) in respect of the financial year ending 31 December 2021, following customary SCA approval of the AGM agenda.

The proposed semi-annual dividend policy aligns with Yahsat’s commitment to maximizing shareholders’ returns, while recognizing the growing scale and enhanced financial profile following the Group’s recent deals, and is underpinned by the Group’s robust balance sheet and ability to pay consistent dividends.

“Yahsat’s excellent visibility on future revenues, its high levels of profitability and cash flow generation present a highly attractive financial profile that underpins our robust and growing dividend capacity,” said Ali Al Hashemi, Chief Executive Officer of Yahsat.

“Creating shareholder value is paramount, through a combination of healthy and regular dividend payments while continuing to execute a clearly defined growth strategy. The dividend policy places Yahsat as one of the highest yielding companies listed on ADX at the current share price.”