Abu Dhabi, UAE – Al Yah Satellite Communications Company has announced an interim cash dividend of 8.23 fils [$2.24 cents] per share, totaling AED 201 million [$54.7 million] for the first half of 2023.
To qualify for this dividend, investors must acquire shares by September 27, 2023, or be shareholders as of October 2, 2023, with dividends set to be distributed by October 16, 2023.
On an annual basis, the company is on track to deliver a dividend of at least 16.46 fils [$4.48 cents] per share, amounting to AED 402 million [$109 million] for the full 2023 financial year, representing a 2% increase over the previous year.
This translates to an annualized dividend yield of nearly 6.5% for 2023, making it one of the highest among listed stocks in the UAE. The second and final dividend for 2023 is expected to be paid in May 2024, subject to board and shareholder approval at the next annual general assembly.
“The Board remains committed to a progressive dividend that grows by at least 2% each year, paid out semi-annually, underpinned by a pipeline of promising growth opportunities,” Musabbeh Al Kaabi, Chairman of Yahsat, said. “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.”
Al Hashemi added that they are in “advanced negotiations” with the UAE government to secure another long-term contract that would significantly increase and extend their 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,” he said.
