Picture used for illustrative purposes.

Gulf Today, Staff Reporter

The Board of Directors of Salik, during its meeting chaired by Mattar Al Tayer, Chairman of the Board, approved the company's audited financial results for the fiscal year ending on December 31, 2022.

Salik achieved a net profit of Dhs1.32 billion in 2022 compared to Dhs1.38 billion in 2021.

The net profit amounted to Dhs529 million for the second half of 2022, which covers the period from the start of the concession agreement between the company and the Roads and Transport Authority, until December 31, 2022, compared to Dhs746 million in the second half of 2021.

Net profit amounted to Dhs287 million in the fourth quarter, an increase of 18.6% from Dhs 242 million in the previous quarter. This is due to the increase in the use of the traffic toll system, which contributed to offsetting the increase in net financing costs due to the increase in the profit rate on debt.

In light of the strong results achieved by Salik and the announced dividend policy, the company's board of directors proposed distributing cash dividends of about Dhs491.4 million to shareholders at 6.5521 fils per share, equivalent to 100% of the company's net profit for the second half, after taking into account the retention of 37.5%. Dhs 1 million as a one-time statutory reserve, subject to shareholder approval during the company's next general assembly meeting.

New stage

Al Tayer said, “Salik’s positive results in 2022 reflect the resilience of Dubai’s economy and its ability to face global turbulence, in addition to the emirate’s continuous endeavor to attract a diverse and growing population.

“This year marked the beginning of a new phase in the Salik march, with our historic listing in September 2022, through which we contributed to supporting the ambitious privatization program pursued by Dubai. Salik is also committed to promoting the growth of the emirate's financial markets and supporting its economic development plans. As a major player in this economy, we will work closely with the Dubai government and other stakeholders to realize the visions of its wise leadership and open new horizons for its citizens and visitors.”

Ibrahim Sultan Al-Haddad, CEO of Salik, said: “These results reflect our ability to succeed despite all the global turmoil and uncertainty that prevailed in the economy, supported by the flexibility demonstrated by the economy.

“The remarkable increase in the use of the traffic toll system contributed greatly to this. Success, with traffic levels returning to pre-pandemic levels in the fourth quarter of 2022, and Salik recording strong profitability in 2022 with an EBITDA margin of 67.5% in the latter half of 2022. I confirm my commitment is to ensure the continuity of these excellent results and to create greater value for our shareholders.”

Traffic movement

Revenue-generating trips recorded a growth of 13% to reach about 413 million trips in 2022, compared to approximately 367 million trips in 2021, as a result of the continued recovery from the consequences of the pandemic, and the fourth quarter of the year recorded the return of traffic levels to their pre-pandemic levels recorded in same quarter of 2019.

The total number of trips through the eight Salik gates increased in 2022 by nearly 12%, recording 539 million trips, compared to about 481 million trips in the previous year.

This is due to the continued recovery from the repercussions of the Covid-19 pandemic, with the complete lifting of restrictions on movement in Dubai, supported by the emirate's hosting of the Expo 2020 Dubai exhibition, which continued during the first quarter of the year.

In the fourth quarter of 2022, the number of revenue-generating trips grew by nearly 15% compared to the previous quarter, to reach about 111 million trips, as a result of the recovery of traffic in October after the end of the summer vacation.

Traffic levels in the fourth quarter generally reached pre-pandemic levels in the same quarter of 2019. Compared to the fourth quarter of 2021, which witnessed the launch of Expo 2020 Dubai, the number of trips generating revenue increased by 4%.