Salik approves $134m dividend for second half of 2022

It represents 100% of the net profit of the second half of the last fiscal year

Salik said it is expecting the number of revenue-generating trips through its toll gates to increase by about 5 per cent to 6 per cent in 2023. AP

Dubai toll operator Salik on Thursday approved a cash dividend of more than Dh491 million ($133.7 million) for its shareholders for the second half of last year.

The dividend, which amounts to more than 6.55 fils per share, was approved during the company’s first annual general meeting as a publicly listed company, Salik said in a statement on Thursday to the Dubai Financial Market (DFM), where its shares are traded.

It represents 100 per cent of the net profit for the second half of the last fiscal year, after the deduction of a one-time statutory reserve of Dh37.5 million, the company said.

“2022 marked a new chapter in Salik's journey, and we are pleased to play a central role in Dubai's ambitious IPO [initial public offering] programme, including the momentous listing of Salik in September 2022,” said Mattar Al Tayer, chairman of Salik’s board of directors.

“We remain dedicated to collaborating closely with the government and other stakeholders in order to achieve our aspirations.”

Salik raised Dh3.73 billion in September from its IPO, which 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 a 75.1 per cent stake after the IPO.

Salik reported an increase of about 12 per cent in its 2022 full-year revenue to Dh1.89 billion, while fourth-quarter revenue rose 2 per cent to Dh502 million.

The number of vehicles registered with the toll operator increased 7 per cent annually to 3.7 million in 2022.

Last month, Salik said it is expecting the number of revenue-generating trips through its toll gates to increase by about 5 per cent to 6 per cent in 2023, driven by the resurgence of the UAE economy after the Covid-19 pandemic.

In 2022, the total number of trips made through Salik’s toll gates rose by 12 per cent annually to 539 million on the continued recovery from the coronavirus-induced slowdown as restrictions were fully lifted in Dubai, as well as by the positive growth resulting from Expo 2020 Dubai in the first quarter of the year.