Aeroportuario del Centro Norte Approves a Special Dividend

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Aeroportuario del Centro Norte Approves a Special Dividend
Credit: © Reuters.

by Daniel Shvartsman - Mexican airport operator Grupo Aeroportuario del Centro Norte SAB de CV (NASDAQ: OMAB ) announced the approval of a special dividend meeting at their shareholder meeting yesterday. The approval is for a dividend of up to 4,370 million Pesos, or Ps 11.20/share, the equivalent to about $4.30/share for the ADRs that trade in the U.S. This compares to a share price of $52.84/share in the U.S. and Ps 136.50 in Mexico (Grupo Aeroportuario Del CentroNorte (MX: OMAB )).

“Our cash position and our strong cash generation, which is the result of a continued improvement in our passenger traffic levels, as well as the strong performance in our non-aeronautical activities; and the solid balance sheet, reinforce our positive perspectives for the Company going forward, and we believe we can add more value to our shareholders through this special dividend distribution”, said Ricardo Dueñas, OMA’s Chief Executive Officer.

The board of directors will decide ultimately on the date and specifics of the payment, though the press release points out that a payment of the full Ps 11.20/share would lead to a 12.2% trailing 12 months yield at Tuesday's closing price.

This comes as travel stocks remain in watch with the cross-currents of reopening and restrictions related to Omicron. Grupo Aeroportuario del Centro Norte has yet to recover to 2019 passenger levels, though as per the decision and the press release, they appear confident in their position. The press release stated that the company believes, "that the special dividend will allow the Company to 1) reduce its cost of capital, 2) provide a more adequate return on capital, as measured by net income divided by shareholders’ equity, 3) achieve a more efficient capital structure, and 4) continue to provide adequate returns to shareholders."

OMAB ADR Shares are up 1.3%, while peers Grupo Aeroportuario del Pacifico SAB De CV ADR (NYSE: PAC ) are down .1% and Grupo Aeroportuario del Sureste SAB de CV ADR (NYSE: ASR ) is flat.

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