Shareholders of Al Yah Satellite Communications, or Yahsat, have approved a total dividend payment of Dh385.5 million ($105m) for 2021, after the company posted a record profit last year.
At the company's annual general meeting held on Monday, shareholders also gave the green light to amend Yahsat’s current dividend policy to permit semi-annual dividend payments, allowing the company to pay an interim dividend to shareholders in October 2022 and to maintain semi-annual dividend payments going forward, the company said in a statement on Tuesday to the Abu Dhabi Securities Exchange, where its shares are traded.
“At the AGM, our shareholders approved a final dividend for the fiscal year 2021 of Dh192.7m, or 7.90 fils per share, bringing the total dividend for the year to Dh385.5m, or 15.80 fils per share, reinforcing our position as one of the highest dividend yielding stocks on ADX and our commitment to shareholder value creation,” said Musabbeh Al Kaabi, chairman of Yahsat.
“We also reconfirm our plans to grow the dividend by at least 2 per cent per annum, which, going forward, will be paid semi-annually starting in October 2022.”
Founded in 2007, Yahsat operates in more than 150 countries across five continents. The satellite communications company's five satellites reach more than two thirds of the world’s population. A sixth satellite is expected to launch in the second half of 2023 and begin commercial operations 12 months later.
“Looking ahead to 2022, the satellite industry is set for significant growth, both nationally and internationally, and Yahsat is well-positioned to capitalise on this,” the company said.
“We expect to build on our position as the UAE’s flagship satellite operator, and we have an extensive pipeline of new business opportunities, with approximately 70 per cent of 2022 projected revenues already contracted at the end of 2021.”
The company reported a 1.2 per cent increase in its full-year 2021 profit to $69.8m, compared to a year before, as other operating expenses dropped and revenue grew slightly.
A unit of Mubadala Investment Company, Yahsat raised about $731m from its initial public offering last July.