Dubai toll operator Salik reported about a 12 per cent jump in its 2022 full-year revenue amid higher growth in traffic as the UAE’s economy rebounds from the coronavirus pandemic.
The total revenue for the 12-month period to the end of December climbed to Dh1.89 billion ($514 million), the company said in a filing to the Dubai Financial Market, where its shares are traded.
Net profit for the period slid about 4 per cent to Dh1.32 billion while total assets grew about 17 times to Dh5.3 billion from 2021.
Salik’s revenue increased as a result of “solid operational performance reflecting positive economic activity and growth in traffic, with revenue-generating trips increasing 12.6 per cent year on year to 413 million trips through Salik gates”, it said on Friday.
Salik also said comparing its profitability from one year to another may not accurately reflect the company’s performance due to changes in its operating structure and cost profile.
Since July 2022, Salik has been operating as a separate legal entity from the Roads and Transport Authority through a 49-year concession agreement.
“This has resulted in new costs, such as concession fees, rent, amortisation and transitional service expenses, as well as finance costs that did not exist prior to July 2022,” the company said.
Salik raised Dh3.73 billion in September from its initial public offering that was more than 49 times oversubscribed across all tranches, with total gross demand at Dh184.2 billion.
The Dubai government sold more than 1.867 billion shares in the company, or 24.9 per cent, at Dh2 a share. The government retained 75.1 per cent stake after the sale of stake.
The UAE Strategic Investment Fund, Dubai Holding, Shamal Holding and the Abu Dhabi Pension Fund were cornerstone investors in the IPO, with a total commitment of Dh606 million.
The country's economy made a strong rebound from the coronavirus-induced slowdown on the back of higher oil prices and government initiatives to support businesses and the economy.
The Arab world's second-largest economy is estimated to have grown by 7.6 per cent last year — the highest in 11 years — after expanding by 3.9 per cent in 2021, according to the UAE Central Bank.
Overall, the UAE economy is projected to grow 3.9 per cent in 2023 while non-oil sector expansion is estimated at 4.2 per cent, according to the Central Bank.