Tabreed, the UAE-based international district cooling company, has released its consolidated financial results for the first six months of 2024 and announced changes to its Board of Directors.
The results demonstrate exceptional financial health driven by business growth, sustained profitability margins, and a commitment to sound financial discipline. Tabreed experienced an 8% year-on-year surge in consumption volumes, reflecting rising cooling demand during the summer and continued strategic expansion over the past 12 months. As a result of strong operating performance, the company delivered a normalized net profit before tax of AED 291 million – an increase of 4% compared to the same period last year.
H1 2024 also saw Tabreed earnings before interest, taxes, depreciation, and amortization (EBITDA) increase to AED 603 million, which compares favorably to the AED 590 million reported for H1 2023. Topline group revenue increased to AED 1.08 billion for H1 2024, compared to AED 1.067 billion during the first half of 2023. Tabreed’s H1 2024 EBITDA margin increased year-over-year to 56%, demonstrating the company’s ability to generate strong financial results while expanding its business.
The company generated impressive free cash flows of AED 978 million over the past 12 months, translating to a healthy yield of more than 10%. Demonstrating responsible management and prudent use of surplus cash, Tabreed further reduced its debt by 12% in the first half of the year by repurchasing an additional USD 207 million (AED 759 million) of its outstanding sukuk due in 2025.
Including the USD 33 million (AED 12 1 million) Sukuk repurchased in 2023, Tabreed has now repurchased a total of USD 240 million (AED 880 million) of the outstanding Sukuk. The buyback is part of Tabreed’s active management of its debt portfolio to optimize its funding cost and further strengthen its balance sheet. Simultaneously, the company increased cash returns to shareholders, evidenced by an increase of 15% year-on-year in cash dividends paid for the year 2023. During the annual general assembly held in March 2024, a cash dividend of 15.5 fils per share for 2023 was approved by Tabreed’s shareholders, which was subsequently paid in April 2024.
Additionally, during H1 2024, Tabreed completed and commissioned its new district cooling plant on Saadiyat Island, Abu Dhabi. With an ultimate capacity of 21,000 RT (refrigeration tons), 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.
Tabreed also kicked off its previously stated plans to increase the company’s international reach by sponsoring the key Big 5 Construct event in Cairo, Egypt. Senior management gave keynote addresses and participated in high-level discussions with planners, developers, and government representatives, centered on district cooling being the only viable solution for new, sustainable cities.
Changes to the Board of Directors
Tabreed is pleased to announce the appointment of Bakheet Al Katheeri as the new Chairman of its Board of Directors, succeeding Khaled Al Qubaisi, who has served as Tabreed’s Chairman since 2017.
Al Katheeri, who has been a member of the Board since 2022, is well-positioned to lead Tabreed through its next growth phase, with more than two decades of operational and investment expertise in the energy, infrastructure, and industrial sectors. Currently, he serves as the Chief Executive Officer of Mubadala’s UAE Investments platform, where he is responsible for guiding the growth and strategic direction of a diverse portfolio of major UAE companies. Also, his previous experience with ADNOC and academic background covering Engineering, Applied Mathematics, and Environmental Science are highly relevant to the business.
Tabreed is also pleased to welcome Mansoor Mohamed Al Hamed as a new Board member. For more than 15 years, Mansoor has been instrumental in the strategic growth and development of Mubadala Energy, where he has served as the CEO for almost four years.
Financial highlights – six months ended 30 June 2024:
- Group revenue increased to AED 1.08 billion (H1 2023: AED 1.067 billion)
- EBITDA increased to AED 603 million (H1 2023: AED 590 million)
- Normalized net profit before tax increased by 4% to AED 291 million (H1 2023: AED 280 million)
Net profit after tax is AED 269 million (H1 2023: AED 386 million, including one-off gains)
Operational highlights – six months ended 30 June 2024:
- Tabreed’s consumption volumes increased by 8% year-on-year
- Total connected capacity reached 1.308 million Refrigeration Tons (RT)
- 4,646 Refrigeration Tons (RT) of new customer connections were added, mostly in the UAE
Commenting on the company’s H1 2024 results and his appointment, Bakheet Al Katheeri, Tabreed’s Chairman, said: “In the first half of 2024, Tabreed demonstrated a strong financial performance with increased consumption volumes driving higher profits and improved EBITDA. 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 decarbonization across the UAE and the broader region.
