Tabreed, the Dubai-based district cooling services company that brings down the temperatures at many iconic UAE buildings, including Burj Khalifa, Ferrari World and Dubai Mall, said consumption grew 6 per cent year-on-year while releasing its financial result for the first nine months of the year.
The growth in consumption and 29,000 Refrigeration Tons (RT) of new connections added in the past 12 months has helped revenue increase to AED 1.85 billion ($500 million) in 9M 2024. Normalised net profit before tax increased by 4 per cent to AED 462 million ($125.8 million).
Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased to AED 933 million ($254 million), as compared to AED 914 million ($248.8 million) for the same period last year. EBITDA margin remained stable at 50 per cent.
New loads connected during the third quarter gathered pace with 12,444 RT added, compared to 4,646 RT connected in the first half of 2024. This includes international expansion, with 3,000 RT incremental load connected in India and 1,500 RT in Egypt.
Khalid Al Marzooqi, Tabreed’s Chief Executive Officer, commented: “Yet again Tabreed has proved its worth to investors and stakeholders alike, exhibiting growth both at home and internationally as demand for our sustainable cooling increases. This company has a laserlike focus on decarbonisation and we are making strides to take Tabreed’s unmatched expertise into new territories while continuing to explore opportunities across the UAE and GCC.
“Tabreed’s hard-earned reputation for fiscal responsibility continues to be recognised around the world and these results serve as further proof that this company is a safe haven for new and existing shareholders, delivering long-term value and consistently healthy returns.”
Tabreed continued to generate strong cash flows with free cash flows of AED 912 million over the past 12 months, translating to a healthy yield of more than 10 per cent. The company further reduced its debt by 12 per cent in the first nine months of the year. This resulted in strengthening of the balance sheet with a net debt to EBITDA ratio of 4.0x.
During the third quarter, Tabreed became the first district energy company in the world to achieve ‘Verified Carbon Standard’ status following the conclusion of a year-long independent assessment by Verra at one of the company’s Abu Dhabi district cooling plants.
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