As of the end of the first quarter of 2024, the net debt to EBITDA ratio was 3.97x, said Tabreed. Image Credit: File photo

Abu Dhabi: DFM-listed district cooling company Tabreed has marked a significant milestone with a 4 per cent increase in net profit before tax, reaching Dh122 million. This notable growth, compared to the Dh117 million reported during the same time last year, underscores Tabreed’s financial strength and stability. The company’s consumption volume has also seen a robust increase of 9 per cent year-on-year, driven by new connections and organic growth recorded during the past year.

During Q1-2024, Tabreed’s topline and earnings before interest, taxes, depreciation and amortisation (EBITDA) continued to climb at a healthy rate compared to Q1-2023. Tabreed’s EBITDA margin was 58 per cent, compared to 57 per cent in the first quarter of 2023, with topline group revenue of Dh468 million for the first quarter of 2024.

Get exclusive content with Gulf News WhatsApp channel

Tabreed’s management of working capital has enabled it to achieve a cash conversion rate of 90 per cent, the company said. The company also completed the third phase of the ‘Tasheel’ initiative, a programme to retrofit chillers with Variable Frequency Drives (VFDs), significantly enhancing energy efficiency.

The company’s commitment to sound financial practice is also evident in its reduced debt levels, which lead to healthier leverage ratios. As of the end of the first quarter of 2024, the net debt to EBITDA ratio was 3.97x.

Tabreed recently completed a successful tender offer to repurchase a portion of its outstanding $500 million sukuk due in 2025. With this strategic move, combined with prior sukuk purchases, they have bought back a total of $240 million (Dh880 million) of their debt. This proactive approach to debt management aligns with Tabreed's ongoing efforts to lower funding costs and ensure their financial stability.

Khaled Abdulla Al Qubaisi, Tabreed’s Chairman, said, “I am particularly pleased to share details of the growth delivered by Tabreed across key financial and operational metrics, showcasing our commitment to delivering value to our investors. This upward trajectory is a testament to our strategic initiatives and highlights the company’s resilient performance.”

“Our strategic initiatives, both locally and internationally, are geared towards ensuring we maintain our positive momentum in the medium term. We are confident that we can continue leading the way in sustainable cooling, creating value for our shareholders and positively contributing to the communities, businesses and industries we serve.”