UAE district cooler Tabreed's H1-2024 profit after tax drops to Dh283 million
District cooler has been reducing debt load through repurchases of outstanding sukuk
Dubai: The first-half 2024 net profit for the district cooling firm Tabreed slipped to Dh283.83 million from Dh401.84 million, while revenue was flat at Dh1.07 billion.
When it comes to debt, Tabreed made significant headway during the period, reducing it by 12 per cent by repurchasing an additional Dh759 million of its outstanding sukuk due in 2025.
Now, including the Dh121 million of sukuk repurchased in 2023, Tabreed has now bought a total of Dh880 million of the outstanding. “The buyback is part of Tabreed's active management of its debt portfolio to optimise its funding cost and further strengthen its balance-sheet,” the company said in a statement.
It also increased cash returns to shareholders, through a 15 per cent increase in dividend paid for 2023. (During the annual general assembly in March 2024, a dividend of 15.5 fils per share for 2023 was approved by Tabreed shareholders, which was paid in April 2024.)
In the first-half of 2024, demand for its cooling services were higher by 8 per cent, while Tabreed’s total capacity hit 1.3 million RT (refrigerated tons).
“Tabreed demonstrated a strong financial performance with increased consumption volumes driving higher profits and improved EBITDA,” said Dr. Bakheet Al Katheeri, Chairman. “Our focus on prudent capital allocation has strengthened our financial position, ensuring we are ideally positioned for growth and expansion of our vital role in key infrastructure projects and decarbonisation across the UAE and the broader region.”
The company has in the recent past won contracts in Egypt and India, while Saudi Arabia too remains a high priority.
In the UAE, Tabreed recently commissioned a new district cooling plant on Saadiyat Island, Abu Dhabi. With an ultimate capacity of 21,000 RT, the facility supplies sustainable cooling to residential and commercial communities. It is currently supplying 9,000 RT with plans to add 6,000 RT over the next two years.