News Operators Satellite

Yahsat increases interim cash dividends to $54.7m for H1 2023

On an annualised basis, the group is on track to deliver a dividend of at least $4.48 cents per share, equivalent to $109m in total for the full 2023 financial year.
Musabbeh Al Kaabi, Chairman of Yahsat

Yahsat, the UAE’s flagship satellite solutions provider, has announced that it will pay an interim cash dividend of 8.23 fils ($2.24 cents) per share, equivalent to AED 201m ($54.7m) 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 2nd of October 2023 (the Record Date). Interim dividends will subsequently be paid by the 16th of October 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 ($4.48 cents) per share, equivalent to AED 402m ($109m) in total for the full 2023 financial year. This represents an increase of 2% over the prior year and reinforces Yahsat’s commitment to deliver shareholder returns. This also implies an annualised dividend yield of almost 6.5% 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.

Commenting on the development, 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 $1.9bn, 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% 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’s Chief Executive Officer of Yahsat, added: “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 Authorisation-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.”