UAE's Tabreed Reports 61% Rise in First-Half Profit Amid Expansion
Tabreed, officially known as The National Central Cooling Company, witnessed a remarkable surge of nearly 61 percent in its first-half net income. The company's revenue soared, primarily driven by the addition of new customer connections and its ongoing expansion initiatives. During the six-month period ending in June, the net profit attributable to equity holders of the parent company reached Dh386.4 million ($105.28 million).
Tabreed Reports Robust Financial Growth and Expands Operations
Tabreed made this announcement in a filing to the Dubai Financial Market, where its shares are traded. The group revenue for the first half of the year rose by 9.4 percent year on year, amounting to Dh1.07 billion. This growth in revenue was further bolstered by a 5 percent increase in profit from operations, reaching Dh394.2 million by the end of June. The company's expansion efforts led to the addition of 33,483 refrigeration tonnes (RT) of new customer connections across markets in the UAE, Saudi Arabia, Bahrain, and Oman.
Tabreed's Chairman Celebrates Revenue and Profit Growth, Highlights Expansion in GCC and India, and Commitment to Reducing Carbon Emissions
Chairman Khaled Al Qubaisi expressed his delight at Tabreed's continued revenue and profit growth in the first half of 2023. He highlighted the company's efforts to expand its cooling services not only in the GCC but also in India, which not only benefits their growing customer base but also plays a significant role in reducing carbon emissions , As one of the largest utility companies in the Middle East, Tabreed has been actively expanding its operations throughout the region. During the reporting period, the company's total connected capacity reached an impressive 1.3 million RTs. To support its growth, Tabreed commissioned three new cooling plants—one in the UAE and two in Saudi Arabia. Presently, the company operates 89 district cooling plants across the GCC, with the majority located in the UAE. Additionally, it has five plants in Saudi Arabia, seven in Oman, and one in Bahrain, along with other international projects and operations.
Tabreed Makes Significant Investment in India's IT Park to Strengthen Global Expansion Efforts
Tabreed's expansion efforts are not limited to the GCC region; it has also set its sights on India. The company is investing Dh44.34 million in an information technology park in northern India, aiming to bolster its presence in the country. Tabreed is acquiring the cooling infrastructure at Tata Realty's Intellion Park development in Gurugram. The transaction, valued at Dh9.4 billion, signifies the company's commitment to its global expansion efforts. In 2021, Tabreed formed a holding company with the World Bank's International Finance Corporation, pledging to invest up to $400 million over the next five years for its expansion in India.
Tabreed Adopts Cautious Expansion Strategy in the Lucrative Indian Market; Strengthens Partnership with Saudi Tabreed for Growth in the Kingdom
Despite the enticing prospects of the Indian market, Tabreed is cautious about its expansion strategy. The company's chief financial officer, Adel Al Wahedi, emphasized the importance of carefully considering potential clients' profiles and creditworthiness before exploring partnerships. This prudent approach ensures sustainable growth and mitigates risks associated with rapid expansion ,Tabreed's partnership with Saudi Tabreed has been further strengthened with the acquisition of a 30 percent stake by the sovereign wealth fund Public Investment Fund. The company's CFO, Mr. Al Wahedi, expressed optimism about the growth opportunities in the Kingdom, where the ambitious development of multibillion-dollar mega-projects is set to overhaul the economy and potentially outpace Tabreed's current portfolio in terms of refrigeration tonnes.
Tabreed's Strategic Expansion in the UAE: Acquiring Key Cooling Assets in Downtown Dubai and Saadiyat Island
Moreover, Tabreed has been expanding its asset portfolio within the UAE. In 2020, the company acquired a majority stake in Emaar Properties' Downtown Dubai district cooling business for Dh2.48 billion, followed by the purchase of two district cooling units on Saadiyat Island, Abu Dhabi, from Aldar Properties in a Dh963 million deal. These strategic investments aim to strengthen the company's asset base in its home country.
Tabreed Achieves 100% Foreign Ownership Limit in 2022, Paving the Way for International Investment and Sustainable Growth
The year 2022 marked a significant milestone for Tabreed as it increased the foreign ownership limit of its shares to 100 percent, up from the previous 49 percent. This move opened up new avenues for international investors to participate in the company's growth and success. With its strong financial performance and ambitious expansion plans, Tabreed remains committed to delivering efficient and reliable cooling solutions to its customers while making a positive impact on the environment by reducing carbon emissions.