Yahsat increases interim cash dividends to AED 201 million for H1-23

Middle East | September 21, 2023 3:15:15 PM IST
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Abu Dhabi [UAE], September 21 (ANI/WAM): Al Yah Satellite Communications Company PJSC, listed on the Abu Dhabi Securities Exchange on Wednesday said that it will pay an interim cash dividend of 8.23 fils [USD 2.24 cents] per share, equivalent to AED 201 million [USD 54.7 million] in total for the first half of 2023.

To be eligible for the dividend, investors must purchase shares no later than September 27, 2023 (the “Last Day to Participate”) or be shareholders of record as of October 2, 2023 (the “Record Date”). Interim dividends will subsequently be paid by October 16, 2023 to all eligible shareholders (the “Payment Date”).

On an annualised basis, the Group is on track to deliver a dividend of at least 16.46 fils [USD 4.48 cents] per share, equivalent to AED 402 million [USD 109 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, and is amongst the highest currently offered by a listed stock in the UAE.

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 Board of Directors’ recommendation and shareholders’ approval at the next annual general assembly.

Musabbeh Al Kaabi, Chairman of Yahsat, commented: “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 USD 1.9 billion[1], 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 two 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 Chief Executive Officer 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.” (ANI/WAM)