Dubai district cooling firm Empower clears record Dh3b in 2023 revenues

Dubai: The Dubai district cooling company Empower has delivered its best set of revenues, at Dh3.03 billion, for 2023, and which was enough to turn in a Dh960 million net profit. Empower has proposed a second dividend of Dh425 million for the year gone by, to be paid by April. (In 2022, Empower revenues were Dh2.7 billion.)

Empower has earmarked Dh425 million each for April and October payouts. "The distribution marks the fulfillment of Empower’s commitment to pay dividends to its shareholders twice a year, with a cumulative value of Dh850 million per annum during the first two fiscal years following itslisting on DFM," said a statement.

"After the committed dividend distributions for the first two fiscal years following the IPO, the company expects to pay a sustainable dividend in line with the growth of the business." (Empower listed on DFM in November 2022.)

On net profit, Empower's 2023 tally came in lower, at Dh960 million from just over Dh1 billion a year ago. Finance costs had swelled to Dh220.8 million from Dh86 million.

The stock will start trades at Dh1.7, with the 52-week high at Dh2.02.

"Our teams, combined with these resources and our commitment to investing in advanced technologies and modern cooling plants across Dubai, together represent solid foundations for a unique business model that enables sustained revenue and profit growth," said Ahmad bin Shafar, CEO.

Major consolidations

New project wins and consolidating existing capacities have helped Empower lay claim to be the world's biggest district cooling firm. Last year, it entered various master-development agreements with major names in Dubai. These include that with Dubai Maritime City - for 63,000 refrigeration tons - and two plants and related distribution network for the 43 existing and upcoming buildings there. The project will be completed in two phases.

It also finalised an agreement with Sobha Properties for the Hartland project, with a cooling capacity of up to 17,000 refrigeration tons.

Dubai Airport

Empower operations have also extended to Dubai International Airport. With a total capacity of 110,000 refrigeration tons (RT) with a value of Dh1.1 billion, five district cooling plants and related assets were linked to Empower's operational, production, distribution, and administrative systems as part of the deal.

Across Dubai, the number of buildings catered by it reached 1,522 buildings by end 2023, which is a 4 per cent on  2022. The total length of its district cooling pipeline network exceeded 398 kilometers, higher by 4.7 per cent.

The company has 'effectively' navigated challenges and converted them into 'opportunities for future growth', according to the CEO.