Dubai: The Dubai toll operator Salik will distribute all of its available net profit of Dh491.4 million generated in the second-half of 2022 as dividend. This is the tally that will be there for shareholders after a one-off Dh37.5 million deduction to the statutory reserves. The dividend will be paid April 27.
The eligibility date for the dividend is April 13. This was confirmed after Salik held its first AGM since turning into a public listed company and with a high profile on the DFM. The stock is trading at Dh2.9, well over the listing price of Dh2 a share in September last.
“Among key resolutions passed is the Board of Directors’ proposal to distribute 100 per cent of Salik’s net profit of the second-half of 2022, marking the beginning of our commitment to ensuring tangible return and long-term value to our shareholders,” said Ibrahim Al Haddad, CEO. “We are committed to delivering on our promises and taking our business to new heights.”
In 2022, Salik’s revenue increased 11.8 per cent year-on-year to Dh1.89 billion, brought on by a 12.6 per cent rise in the number of revenue-generating trips 'resulting from ongoing recovery after the lifting of COVID-19 restrictions in Dubai'.
Last year, 539 million trips passed through Salik toll gates in Dubai, which includes 'tourists making their way to Dubai’s many attractions, or residents efficiently travelling as part of daily life'. Under a 49-year concession agreement (that ends in 2071) with the Roads and Transport Authority (RTA), Salik holds the exclusive right to operate current and any future toll gates across the emirate.
Even as the Salik stock shines on DFM, the analyst talk has focussed on when the next toll gates will be permitted in Dubai and how soon can the company start monetising these opportunities. The other much anticipated initiative will be the sending out of customised marketing and promotional messaages to Salik users, where Salik uses tech capabilities and alliances with businesses to do so.
For now, Salik shareholders will make do with the Dh491.4 million windfall come April 27.
