Tabreed issues second quarter 2010 consolidated financial results chilled water business drives strong profit growth.

calendar_month August 12, 2010

National Central Cooling Company PJSC (‘Tabreed’), the Abu Dhabi-based utility company, today released its second quarter consolidated financial results. For the six months ended 30 June 2010, total revenue increased by 16 per cent to AED 432.3 million and net profit increased by 83 per cent to AED 86.8 million over the same period in 2009. Excluding minority interests, Tabreed’s share of profits was AED 80.7 million compared to AED 30.1 million in the previous year. The results were driven by strong growth in the Company’s core business of chilled water as new plants and customers came online.
Financial Highlights – Six months ended 30 June 2010

Total revenue increased by 16 per cent to AED 432.3 million, compared to AED 373.8 million in the same period in 2009
Gross profit increased by 16 per cent to AED 197.5 million, compared to AED 170.9 million in the same period in 2009
Net profit increased by 83 per cent to AED 86.8 million, compared to AED 47.4 million in the same period in 2009 reflecting certain non-cash finance gains associated with the Company’s 2008 Convertible Sukuk
Excluding these non-cash finance gains net profits increased by 3%
Chilled water revenue for the period was AED 285.3 million, a 94 per cent increase over the same period in 2009. This is attributable to an increase in chilled water sales as new plants and customers came online
Basic and diluted earnings per share doubled to AED 0.04 per share

Sujit S. Parhar, Tabreed’s CEO, said:
“Tabreed’s focus on business fundamentals and the ongoing recapitalization program is repositioning the Company for growth. Our strategy has been to focus on the core business of chilled water, and these robust first half results reflect growth in the Company’s chilled water business and improved operational efficiencies. Going forward, these factors, combined with a diversified customer base, long-term contracts, a stable cost structure and strengthened corporate governance, will provide the foundation for continued growth.”

Khaled Al Qubaisi, Tabreed’s Managing Director said:
“The results of the first six months of 2010 demonstrate the hard work of everyone at Tabreed, and the improvements made by the management team under the direction and supervision of the Board. We will continue to build the platform to achieve the Company’s objectives of improving performance, increasing profitability and maximizing returns. Completing our recapitalization program will give Tabreed the right balance sheet for growth, and today’s announcement towards the capital reduction is an important step in this process. Tabreed remains a pioneer within the district cooling industry, able to offer bespoke solutions to the often complex cooling requirements of our customers.”

Second Quarter 2010 Highlights:
Following the addition of four new plants in the first quarter of 2010, a further four plants with a combined capacity of 27,525 TR were added in the second quarter 2010. This brings Tabreed’s total installed cooling capacity to 449,625 (gross) TR across 44 plants, compared with 34 plants and a cooling capacity of 352,100 TR a year ago. The four plants added in the second quarter were:

Al Kifaf – 10,000 TR
Rashidiya – 7,500 TR
Jebel Ali – Jumeirah – 5,626 TR
Jebel Ali Industrial – 4,000 TR

A further 8 plants are under construction along with 2 planned expansions, of which 5 plants and 1 expansion are expected to come online in 2010. The capacity addition for 2010 is estimated at 148,300 (gross) TR.

Chilled Water
Tabreed’s core business of chilled water produced revenues of AED 285.3 million, compared to AED 147.2 million in the same period in 2009. This performance was driven by new plants and new customers coming online. Gross profit increased to AED 130.1 million from AED 75.6 in the same period the year before.

Contracting
The Company’s contracting segment recorded revenues of AED 104.7 million, compared to AED 93.7 million over the same period in 2009, with gross profit of AED 22.7 million compared to AED 14.6 million in the first six months of the previous year. Tabreed’s wholly owned subsidiary, Gulf Energy Systems, was the biggest contributor to the results reflecting further progress with the Sowwah Island and Shams projects.

Manufacturing
Tabreed’s manufacturing segment reported revenues of AED 41.5 million compared to AED 116.7 million in the same period in 2009, while gross profit fell to AED 13.2 million compared to AED 41.9 million in H1 2009. This decline was due to reducing order books at Tabreed’s 60 per cent owned subsidiary, Emirates Pre-insulated Pipes Industries.

Services
Tabreed’s services segment, which is involved in the design and supervision of building electrical and mechanical works, reported revenues of AED 38.5 million compared to AED 45.4 million in the same period in 2009, while gross profit fell to AED 32.6 million compared to AED 40.1 million in the first half of 2009. The change reflects the regional real estate slowdown that affected the services division, which includes Ian Banham & Associates, l2l and Cooltech.

Update on Recapitalization Program:
Since Tabreed’s shareholders approved a recapitalization program for Tabreed on 30th May 2010, the Company has continued to make progress on the program. Tabreed announced today its intention, subject to regulatory approval, to reduce the Company’s share capital through the cancellation of approximately 970,000,000 shares. The cancellation of shares will be on a pro-rata basis at a ratio of 5:1. Each shareholder will retain one share for every five shares it holds, and the remaining shares will be cancelled. The percentage holding in the Company of each shareholder will be the same after the capital reduction as before, subject only to minor adjustments as fractional shares will not be issued.

The proposed cancellation of shares through a capital reduction is a key component of Tabreed’s recapitalization program. Tabreed has submitted the capital reduction proposal to the Emirates Securities and Commodities Authority for approval and will provide further updates to shareholders in due course.

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calendar_month May 14, 2025

Tabreed Releases its Q1 2025 Financial Results and Gears Up for Extensive Growth with New Joint Venture

EBITDA and net profit both increase over same period in 2024Major announcements include signing biggest deal in company’s 27-year historyAbu Dhabi, United Arab Emirates – 13 May 2025: Tabreed, the world’s leading district cooling company, has released its consolidated financial results for the first quarter of 2025, once again reporting increases in EBITDA and net profit over the same period last year. The company’s EBITDA increased by 4% year-on-year to AED 283 million, with an improved margin of 61%, while net profit after tax increased to AED 115 million in Q1 2025, growing by 3% compared to Q1 2024.While the company’s financial performance remained steady during the first quarter of 2025, in this period Tabreed made significant announcements regarding developments that will positively impact its long-term outlook and portfolio growth. The first of these was the raising of USD 700 million via the issuance of a Green Sukuk with a competitive profit rate of 5.279%, attracting strong international investor demand. The proceeds were used for refinancing, in line with eligible use according to Tabreed’s Green Finance Framework.As a result of this refinancing, Tabreed demonstrated further strengthening of its balance sheet, with the majority of its short-term debt converted into longer term maturities, along with further reduction in net debt by 3% YTD and savings in net finance costs of 7% YoY. As a result, leverage further improved with a net debt to EBITDA ratio of 3.55x (compared to 3.7x on 31 December 2024).The second major announcement, following a special signing ceremony held in Dubai on 16 March, confirmed that Tabreed had entered a concession agreement in partnership with Dubai Holding Investments to exclusively provide district cooling services to one of the region’s most eagerly awaited projects: Palm Jebel Ali.This is an important milestone in the history of Tabreed – a 250,000 Refrigeration Ton (RT) concession representing approximately one fifth of the company’s connected capacity. The network will require an estimated investment of AED 1.5 billion, making it the biggest greenfield deal in Tabreed’s 27-year history, and enhances its competitive position in the fast-moving, dynamic Dubai market.Also during the first quarter of 2025, shareholders approved a cash dividend of 15.5 fils per share for 2024, implying attractive yield of 5.6% (at a share price of AED 2.76 as of 12 May 2025). The company’s financial position remained strong, allowing it to invest in accelerating growth while returning cash to shareholders in the form of dividends, thereby delivering sustainable long term value creation. Q1 also saw 4,599 RT of new customer connections added within the UAE and new capacity addition is expected to gather pace in the coming months.Financial highlights – three months ended 31 March 2025: Group revenue remained broadly stable at AED 466 million (Q1 2024: AED 468 million)EBITDA increased by 4% YoY to AED 283 million (Q1 2024: AED 272 million)Net profit after tax increased by 3% to AED 115 million (Q1 2024: AED 112 million)Operational highlights – three months ended 31 March 2025: Consumption volumes decreased by 7%, due to colder weather than experienced during first quarter of 2024Total connected capacity reached 1.33 million Refrigeration Tons (RT)4,599 Refrigeration Tons (RT) of new customer connections added in the UAEChairman of Tabreed, Dr Bakheet Al Katheeri, said: “On the surface all appears ‘business as usual’ and, indeed, the Q1 results demonstrate a company with stability and dependability at its core. While this is entirely true, behind the scenes there is incredible drive and energy facilitating substantial expansion in key markets, Dubai being a prime example. Our recent landmark deal with Dubai Holding Investments perfectly encapsulates the spirit of Tabreed, which prizes strategic partnerships with organisations aligned with our values and objectives.“Tabreed’s resilience is one of its hallmarks and only through prudent financial stewardship is the company in a position to commit to such long-term, significant investments. The value to investors will increase, the positive environmental impact continuing to grow, with greater uptake of its globally renowned services. The future is brighter than ever for Tabreed and I look forward to seeing it flourish for many years to come.”

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calendar_month March 28, 2025

Tabreed’s Annual General Assembly Approves AED 441 Million Dividend Payout for FY 2024

Annual General Assembly confirms new appointments to Board of DirectorsChairman points to a momentous, transformative 2025Abu Dhabi, United Arab Emirates – 26 March 2025: Tabreed, the world’s leading district cooling company, yesterday held its Annual General Assembly (AGA). In recognition of the company’s strong financial and operational performance throughout 2024, shareholders approved a dividend payment of 15.5 fils per share, representing more than AED 441 million, to be paid fully in cash.Over the past five years, Tabreed has delivered total shareholder return of 96% in the form of share price increases and dividends and, during 2024, the company reported record revenues and a 32% increase in net profit after tax.The AGA was chaired by Tabreed’s Chairman, Dr Bakheet Al Katheeri, and during the meeting shareholders also confirmed the appointments of new board members, Mansoor Al Hamed and Janis Rey Lozada.Al Katheeri said that Tabreed had performed consistently well throughout 2024, reaping the benefits of prudent recent investments and a considered approach to business development and expansion. “This is one of the UAE’s most resilient companies,” he remarked, “and delivers excellent returns for its investors year after year, with 2024’s dividend payments no exception.“Tabreed has entered 2025 with impressive momentum, already having raised $700 million via its inaugural, five-year green sukuk, and entering a new joint venture with Dubai Holding to supply sustainable district cooling to one of the UAE’s most exciting real estate projects, Palm Jebel Ali. Tabreed’s balance sheet is stronger than ever and there is a strong pipeline of promising opportunities ahead. It undoubtedly remains a safe haven for existing and future shareholders alike.”During 2024 Tabreed completed two new plants and added 23,576 Refrigeration Tons [RTs] of new connections across the company’s portfolio, in the UAE, Saudi Arabia, Oman, Egypt and India. Tabreed also saw consumption volumes grow during 2024, increasing by 5% to 2.66 billion refrigeration ton hours (RTH).

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calendar_month March 17, 2025

Tabreed and Dubai Holding Enter Agreement to Provide District Cooling to Palm Jebel Ali

Anticipated total cooling capacity of approximately 250,000 Refrigeration Tons (RTs)AED 1.5 billion project to be executed in multiple phasesAbu Dhabi, United Arab Emirates – 17 March 2025: National Central Cooling Company (DFM: Tabreed) and Dubai Holding Investments, part of Dubai Holding, have entered a concession agreement to provide district cooling services for Palm Jebel Ali in Dubai.The agreement establishes a joint venture, with Tabreed holding a 51% stake and Dubai Holding Investments 49%. This structure is designed to optimise cooling capacity, enhance information-sharing and strengthen customer protection, while ensuring sustainable cooling solutions for one of Dubai’s most transformative developments.Supported by Tabreed’s major shareholders, sovereign investor Mubadala (42%) and the French low-carbon energy and services company ENGIE (40%), the agreement was signed by Khalid Al Marzooqi – Chief Executive Officer of Tabreed and Omar Karim – Chief Executive Officer of Dubai Holding Investments, in the presence of senior officials from Tabreed, Dubai Holding, Mubadala and ENGIE.Subject to customary approvals, construction of the district cooling network is expected to commence in Q2 2025, with the first cooling services expected to be delivered by 2027. Over time, the system will address the need for approximately 250,000 RTs of cooling capacity and require an estimated investment of AED 1.5 billion.Following the signing, Chairman of Tabreed and Chief Executive Officer of Mubadala’s UAE Investments Platform, Dr Bakheet Al Katheeri, said: “Mubadala has a worldwide reputation for being a responsible investor with an unwavering focus on its ESG framework and Tabreed is a vital part of our portfolio as a driver of sustainability and societal progress. The signing marks a major milestone in Tabreed’s 27-year history and underscores the company’s commitment to providing sustainable, high-efficiency cooling solutions for large-scale developments. I am eagerly looking forward to witnessing the successful progress of this landmark project.”Omar Karim, Chief Executive Officer of Dubai Holding Investments, commented: “This agreement reinforces Dubai Holding’s long-term vision of developing sustainable communities with high-quality infrastructure at their core. Palm Jebel Ali is one of Dubai’s most ambitious developments and by incorporating district cooling services we support our customers and align to our commitment to deliver future-ready urban environments.”Commenting on the agreement, Chief Executive Officer of Tabreed, Khalid Al Marzooqi, added: “Palm Jebel Ali is a transformative project that will shape Dubai’s future and we are proud to play a role in ensuring its infrastructure meets world-class standards. With our extensive experience and cutting-edge technology, we will deliver reliable and environmentally responsible cooling that benefits residents, visitors and stakeholders alike.”

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calendar_month March 06, 2025

Tabreed Successfully Issues USD 700 Million, Inaugural Green Sukuk

First Issuance under new USD 1.5 billion trust certificate issuance programmeNet proceeds to be used for financing or refinancing projects in line with Tabreed’s Green Financing FrameworkStrong investor demand underscored by 2.6x oversubscriptionAbu Dhabi, United Arab Emirates – 5 March 2025: Tabreed, the world’s leading district cooling company, has announced today the successful raising of USD 700 million via an inaugural, five-year green sukuk – the first issuance under its new USD 1.5 billion trust certificate issuance programme. The new sukuk will be listed and traded on London Stock Exchange’s International Securities Market.The issuance of new green sukuk attracted strong institutional demand from high quality local, regional and international investors. This led to the order books exceeding 4.3 times and final issue being oversubscribed by nearly 2.6 times, reflecting the high level of investor confidence in Tabreed’s robust credit fundamentals. The sukuk was competitively priced with a profit rate of 5.279%, achieving the highest tightening by any investment grade regional sukuk issuance this year and the tightest ever credit spread for a five-year instrument by Tabreed and or any other UAE corporate sukuk with a similar credit rating. This high demand was supported by investment grade credit ratings from Moody’s (Baa3) and Fitch (BBB), consistent with Tabreed’s corporate ratings.Tabreed continues to be a pioneer in the international sukuk market, having been a regular issuer over the past 20 years. In 2006, its USD 200 million sukuk issuance was the first to be listed on the London Stock Exchange, which paved the way for other issuers to follow. That issuance was also the first rated sukuk by a corporate entity in the Middle East.Proceeds from this latest sukuk will be used in alignment with Tabreed’s Green Financing Framework, which was first published in March 2022 and later updated in February 2025. It was developed in accordance with the ICMA Green Bond Principles (GBP) 2021 and the Loan Market Association (LMA) Green Loan Principles (GLP) 2023, and is governed by a multidisciplinary management committee led by the Group’s Chief Financial Officer, Adel Al Wahedi. Tabreed is thus able to issue green bonds and loans, with the resulting net proceeds to be used for financing and refinancing ‘Eligible Green Projects’ which include its core business of constructing, acquiring and operating District Cooling schemes, as well as projects related to Energy and Water Efficiency and Wastewater Management.The framework was accompanied by a Second Party Opinion from leading, global ESG ratings agency, Sustainalytics. Together they demonstrate the sustainable nature of Tabreed’s district cooling operations, which use approximately 50% less electricity than conventional cooling.Citi and Standard Chartered Bank acted as Joint Global Coordinators and Citi, Emirates NBD Capital, First Abu Dhabi Bank, HSBC and Standard Chartered Bank acted as Joint Lead Managers and Joint Bookrunners, with Abu Dhabi Commercial Bank acting as Co-Manager.Following the sukuk announcement, Tabreed’s Chief Executive Officer, Khalid Al Marzooqi, said: “Tabreed’s enviable reputation is built on the foundations of sustainability and operational excellence, so this, our first green sukuk, is perfectly aligned with our existing business while focussing on new developments.“The UAE has an ambitious roadmap for net-zero and we are proud at Tabreed to play a vital role in preventing large scale carbon emissions while enabling societal progress through sustainable district cooling. The importance this company attaches to ESG cannot be overstated and our investors know that the energy transition, of which we are at the very centre, is not only good for the environment but good for business, too.”Adel Al Wahedi, Tabreed’s Chief Financial Officer, added: “We are delighted with the investor response to our first green sukuk. This demonstrates the strength of our business model, financial stability and sustainability credentials of Tabreed. This issuance is part of our USD 1.5 billion programme aimed at supporting our ambitious growth plans and sustainability commitments.”Tabreed recently released its full-year financial results for 2024, delivering strong financial performance driven by local and international expansion, new connections with existing clients and development of greenfield sites. The company has been rated Baa3 (outlook stable) by Moody’s and BBB (outlook stable) by Fitch, with the Sukuk Programme having been assigned the same credit ratings.Currently operating 92 district cooling plants in six countries, during 2024 Tabreed became the world’s first district energy company to achieve the ‘Verified Carbon Standard, able to trade carbon credits in the voluntary market as an emissions preventer.

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