Parkin Declares Maiden Interim Dividend of AED 198.77 Million

Photo : Dubai Government Media Office

Parkin Company PJSC, referred to as "Parkin" or the "Company," has announced its planned dividend payment for the first half ("H1" or "first half") of 2024. As the largest provider of paid public parking facilities and services in Dubai, Parkin reported impressive financial results that reflect its robust operational performance.

• Strong Financial Performance: For the first half of 2024, Parkin achieved a net income of AED 198.773 million and generated free cash flow to equity amounting to AED 135.643 million. This strong performance underscores the Company's effective growth strategy implemented following its successful IPO in March.

• Dividend Distribution: In line with its commitment made at the time of the IPO, Parkin will distribute an interim cash dividend of AED 198.773 million to its shareholders by the end of October. On a per-share basis, this translates to 6.63 fils per share, reflecting the Company's policy to distribute the higher of net income or free cash flow to equity.

Leadership Comments:

Eng. Mohamed Al Ali, CEO of Parkin, expressed his satisfaction with the Company's performance: "I am pleased to report that Parkin’s growth strategy delivered a strong first-half year performance following our record-breaking IPO in March. The Company’s best-in-class operational, technological, and enforcement capabilities continue to drive impressive results. I am proud of the performance we have delivered, which is a testament to the considerable efforts of the senior management team, under the guidance of our experienced Board. Looking ahead, we are committed to providing attractive, sustainable returns to our shareholders. Parkin’s maiden interim dividend reflects both our strong financial performance and continued confidence in the Company’s future growth and cash generation prospects."

Dividend Distribution Framework:

Parkin’s ability to pay dividends hinges on several factors, including the availability of distributable reserves, capital expenditure plans, and other cash requirements. The decision to declare any level of dividend will depend on future profits and the Company's business plan, at the discretion of the Board of Directors and General Assembly.

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Subject to the conditions outlined, Parkin anticipates distributing a minimum dividend payout of the higher of:

1. 100% of Net Income; or
2. Free Cash Flow to Equity.

The dividend distribution aims to reflect the Company’s expectation of strong cash flow generation and long-term earnings potential. Parkin plans to pay dividends semi-annually in April and October each year.

The Board of Directors and General Assembly will review the dividend distribution annually, considering the Company's cash management needs for operating expenses, finance costs, and planned capital expenditures. Additionally, they will assess market conditions, the current operating environment, and future outlook to ensure prudent financial management and sustainability.

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