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 16, 2025

UAE’s Ministry of Defence Strengthens its Environmental Credentials with Tabreed and Emerge

New Abu Dhabi project sees the integration of solar power into Tabreed’s energy mixAbu Dhabi, United Arab Emirates – 16 June 2025: The UAE Ministry of Defence, in partnership with Tabreed, the world’s leading district cooling company, and Emerge, a joint venture between the UAE’s Masdar, a global clean energy leader, and France’s EDF Group, announced today the completion of a new project to integrate solar energy into two district cooling plants serving the Ministry’s facilities in Abu Dhabi.In March 2024, a partnership agreement was signed to develop solar PV plants to be operated for a period of 25 years. Approximately 4,000 solar panels have been installed at the district cooling plants, supplying their thermal energy storage infrastructure and chilled water pumps with 2.4 megawatt (MW) of clean electricity. This will help reduce reliance on the electricity grid during peak periods and prevent emissions of more than 2,600 tons of CO2 annually.The project was officially inaugurated by a senior delegation from the Ministry of Defence, Tabreed and Emerge. This initiative follows the unveiling of the UAE Armed Forces Climate Change Strategy in December 2023, announced by the UAE Ministry of Defence to reinforce its commitment to reducing carbon emissions through a long-term energy transition. Tabreed’s CEO, Khalid Al Marzooqi, explained that this achievement further strengthens the already close strategic relationship between the company and the Ministry of Defence, which began with the commissioning of its first district cooling plant in 1998. He added, “Sustainability is a core concept at Tabreed, and we continually analyse and improve our operations in line with global aspirations to achieve climate neutrality. Recently Tabreed made a significant leap in diversifying its energy mix by introducing geothermal energy, and today we are proud to introduce another renewable: solar. These achievements underscore Tabreed’s commitment to the UAE’s net-zero goals and we will continue to integrate renewable energy at additional plants, to further our support of the public and private sectors in achieving their own environmental targets.”Michel Abi Saab, General Manager of Emerge, said: “This milestone reflects the growing momentum for distributed solar solutions across vital sectors of the UAE. We are proud to support the Ministry of Defence and Tabreed in advancing their sustainability goals by integrating clean energy into core infrastructure. At Emerge, we remain committed to enabling partners across the region to decarbonise their operations, reduce energy costs and drive measurable impact towards the UAE’s net-zero ambitions.” - ENDS –

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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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