SES hints Dividend uplift
December 20, 2024
For the past few years satellite operator has kept a very trimmed Dividend for shareholders of an annual €0.50 per annum, for each ‘A’ share held by shareholders. This past year this has been split into two separate €0.25 payments made in October 2014 and with the next due in April 2025. However, this low rate of return could be on the cusp of being improved.
For two years (2019-2020) the annual dividend was even lower at 40 cents per annum.
The two-year period 2017-2018 saw an €0.80 dividend paid each year, but prior to this period in 2016 SES paid out €1.34 and in 2015 they paid €1.30.
Shareholders have been hoping for a return to those €1+ payments for some time. Now there may be some light at the end of the tunnel.
The upbeat news came from SES CEO Adel Al-Saleh. He was speaking in connection with the announcement of the IRIS2 contract signing, and referencing the financial obligations surrounding the IRIS2 investment, he said: “Participation in IRIS2 is fully consistent with the principles of SES’s financial policy. SES maintains its prior expectation to have an Adjusted Net Debt to Adjusted EBITDA ratio of below 3 times within 12-18 months after closing the Intelsat acquisition, which is on track to complete during H2 2025. SES’s commitment to a stable to progressive dividend is also reaffirmed with an annual base dividend of at least €0.50 per A-share. SES intends to increase the annual dividend as soon as the Adjusted Net Debt to Adjusted EBITDA ratio is reduced to below 3 times which is expected by 2027 as noted above.”
His comments suggest that by financial year 2027 (a full year after the Intelsat deal closes), shareholders could expect growth in the dividend pay-out.
However, shareholders deserve some reward for their patience. December 19th saw the SES share price again suffer a distressing fall in value to €2.96, and a 52-week low and a fall of €3.07 in the year. The 5-year loss for shareholders is €9.82. A reward by means of a dividend is well overdue.
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