Dubai’s road toll company Salik will pay Dh491.4 million as second-half 2022 dividend to shareholder, according to a regulatory filing on DFM on Tuesday.
The company's board of directors has proposed to distribute 100 per cent of second half of 2022 net profit after deducting Dh37.5 million statutory reserve, equivalent to Dh 491.4 million or 6.5521 fils per share, the company said in an annual report on the Dubai Financial Market.
The newly-listed company said proposed dividend was subject to approval at the company’s general assembly meeting in April 2023.
Last month, Salik reported a 12 per cent increase in its 2022 full-year revenue amid higher growth in traffic as the UAE’s economy rebounds from the coronavirus pandemic. However, annual net profit dropped four per cent to Dh1.32 billion while total assets rose 17 times to Dh5.3 billion from 2021.
“On March 6 2023, the board of directors proposed to distribute Dh491,407,500 dividend to the shareholders (6.5521 fils per share),” according to the report.
In its latest statement, Salik said it expects the number of revenue-generating trips through its eight toll gates to fully recover to increase by five per cent to six per cent in 2023, and guides for an earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 63 per cent to 64 per cent.
In 2022, the total number of trips made through Salik’s eight toll gates increased approximately rose 12 per cent year-on-year basis to 539 million trips from 481 million trips a year earlier.
Ibrahim Sultan Al Hadda, CEO of Salik, said the strong increase in toll road usage was a key driver of the company’s success, compounded by traffic levels in the fourth quarter of 2022 having recovered to pre-pandemic levels.
“I am pleased to report that Salik enjoyed robust profitability in 2022, with an EBITDA margin of 67.5 per cent for the latter half of 2022," Al Hadda said.
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