The Board of Directors of Salik, a company chaired by Mattar Al Tayer, reviewed and approved the audited financial results for the fiscal year ending December 31, 2022, at a recent meeting. In 2022, the company earned Dhs1.32 billion in net profit, down from Dhs1.38 billion the previous year.
The company’s net profit for the second half of 2022, from the start of the concession agreement between the company and the Roads and Transport Authority until December 31, 2022, was Dhs529 million. This is less than the Dhs746 million recorded in the second half of 2021.
Salik’s net profit in the fourth quarter of 2022 was Dhs287 million, up 18.6% from the previous quarter’s net profit of Dhs242 million. This increase in net profit is due to the increased use of the traffic toll system, which helped to offset the increase in net financing costs caused by the increase in the profit rate on debt.
Toll road operator reports stable growth, increases revenue-generating trips, and intends to pay dividends to shareholders
The impact of various factors such as changes in market conditions, expenses, and revenue streams is reflected in Salik’s financial results for 2022. While the company’s net profit decreased for the year as a whole, it was able to increase its net profit in the fourth quarter by leveraging increased toll system usage.
Following the announcement of Salik’s strong financial results, the board of directors has proposed a dividend distribution plan to reward shareholders. The proposed plan calls for cash dividends of approximately Dhs491.4 million to be distributed to shareholders, equating to 6.5521 fils per share.
This dividend distribution plan is equal to 100% of the company’s net profit for the second half of the fiscal year after 37.5% of the profits are retained. Furthermore, the board has proposed allocating Dhs1 million as a one-time statutory reserve. The proposed dividend distribution plan and the statutory reserve, on the other hand, are subject to shareholder approval at the company’s next general assembly meeting.
The proposed dividend distribution plan reflects the company’s dedication to its shareholders and acknowledges their contributions to the company’s success.
It also demonstrates the company’s strong financial position and ability to maintain a consistent and long-term dividend policy. By reserving a portion of its profits, the company hopes to ensure that it has enough funds to support its future growth and expansion plans.
According to Al Tayer, Salik’s positive financial results in 2022 demonstrate Dubai’s economy’s resilience and ability to withstand global economic turbulence.
He went on to say that the emirate’s ongoing efforts to attract a diverse and growing population had also played a significant role in achieving these results.
Al Tayer added that Salik has reached a new milestone in its history, with the company’s historic listing scheduled for September 2022.
The listing has made a significant contribution to Dubai’s ambitious privatization program and the development of the emirate’s financial markets. As a key player in the local economy, Salik is committed to collaborating closely with the Dubai government and other stakeholders to realize its wise leadership’s visions and open new horizons for citizens and visitors.
Salik is poised to contribute to the emirate’s continued economic growth through its listing and commitment to supporting Dubai’s economic development plans. The company’s main focus on collaboration with relevant stakeholders reflects its commitment to being a responsible corporate citizen and an active participant in the economic progress of the emirate.
Ibrahim Sultan Al-Haddad, CEO of Salik, expressed satisfaction with the company’s financial results and ability to succeed despite global economic turmoil and uncertainty. He attributed this success to the local economy’s adaptability, which has aided Salik’s efforts.
The CEO highlighted that the significant increase in traffic toll system use was critical in achieving these positive results. He mentioned that traffic levels had returned to pre-pandemic levels in the fourth quarter of 2022, which helped the company’s profitability even more. Indeed, Salik’s EBITDA margin for the second half of 2022 was a whopping 67.5%.
Al-Haddad reaffirmed his commitment to maintaining the company’s excellent performance and increasing shareholder value. Salik’s focus on long-term growth and shareholder value creation remains a top priority for the CEO.
Salik’s revenue-generating trips increased by 13% in 2022, reaching approximately 413 million trips, up from 367 million trips the previous year. The lifting of Covid-19 restrictions, as well as the continued recovery of the local economy, aided this recovery, with Expo 2020 Dubai also playing a significant role. In 2022, the total number of trips through the eight Salik gates increased by nearly 12%, reaching 539 million.
The number of revenue-generating trips increased by nearly 15% in the fourth quarter of 2022 compared to the previous quarter, reaching approximately 111 million trips, owing primarily to the recovery of traffic in October following the end of the summer vacation. During the fourth quarter of 2022, traffic levels generally returned to pre-pandemic levels, with a 4% increase in revenue-generating trips compared to the fourth quarter of 2021, when Expo 2020 Dubai was launched.