calendar_month August 03, 2010
Tabreed Strategic Business Review Leads to Recapitalization Program

Un-audited full-year results for 2009 announced

Highlights:

  • Total revenues for 2009: AED 742 million (2008: AED 735 million)
  • Gross profit was AED 291 million; after impairments, net loss (Tabreed’s share) was AED 1,118 million for 2009
  • Revenue from the core chilled water business rose 29 % and gross profit 31 % over 2008

National Central Cooling Company PJSC (‘Tabreed’), the Abu Dhabi-based utility company, released its un-audited 2009 year-end financial results today. The results revealed that for the twelve months ended 31 December 2009, total revenues were AED 742 million – a slight increase over 2008 figures. Tabreed’s gross profit was AED 291 million in 2009. However, after finance costs, results from associated companies, a non-cash impairment charge and other items, Tabreed recorded a loss of AED 1,118 million for the year. This compares with a profit of AED 73 million in 2008.

Due to the challenges facing Tabreed, the Board of Directors appointed a new management team in mid-2009 which comprised of seasoned utility sector experts. The team undertook a comprehensive review of Tabreed’s project portfolio, contracts, business plan, financial performance, liquidity position and overall capital structure. Based on this review, the management team recommended, and the Board of Directors approved:

  • Declaring a non-cash impairment charge of AED 1,161 million for 2009 to reflect the longterm value of projects in light of the current difficult economic climate; and
  • A short-term financing facility from Mubadala Development Company PJSC (‘Mubadala’) of AED 1.3 billion to provide funding while Tabreed completes the recapitalization program. As part of the recapitalization program, this senior-debt financing will be available until the end of 2010 and may be converted to long-term capital.

The Board also approved submitting to the shareholders a recapitalization plan to achieve a stable longterm financial profile and capital structure, the elements of which include:

  • Entering into discussions with strategic investors to provide long-term capital necessary to support the development of the business. Options for new capital include a private placement and/or public offering; and
  • Proactively engaging with creditors to support the recapitalization.

By mid-April 2010 the Board intends to call for an Extraordinary General Assembly (EGA) of the shareholders to vote on resolutions authorizing the Board to conclude a recapitalization of the company through one or more of: a capital reduction, issuance of new capital raising instruments and arrangements with creditors, banks and Sukuk holders.

Tabreed will continue to liaise closely with SCA throughout the recapitalization program.

Tabreed Board Chairman, Khadem Al Qubaisi commented: “Tabreed’s Board of Directors requested a strategic review in order to understand the challenges facing the company’s finances and business model. Such a review was essential in the wake of the economic downturn, which hit Tabreed at the peak of an unprecedented growth program. In parallel with the review, the Board tasked the new management team with the immediate implementation of corporate governance and process controls with a priority of achieving efficiencies both in the business model and cost structure. The recommendations of the Board announced today will help ensure that Tabreed can continue to support infrastructure needs as well as provide long term competitive returns for investors.”

Tabreed CEO, Sujit S. Parhar commented: “Over the course of 2009, we initiated a process of reviewing the business model and cost structure which has led to re-engineering of the company so we could take decisive action to address the challenges facing the business.”

“In addition to today’s announcement, the review has led us to focus on value-engineering future plants and networks. Our priority is to work according to strict needs-assessments, best-in-class design, delivery and operations and ensure firm commitments from customers in advance of construction as well as to secure a long-term financing structure for the business. The changes we have made in these difficult times are designed to better position Tabreed to deliver consistent returns for its shareholders over time. Completion of the recapitalization of Tabreed will allow us to focus on growing our core business and safeguarding our quality assets. The short-term financing from Mubadala will allow us to continue to operate through the recapitalization program.”

Un-audited 2009 Results and Corporate Highlights:

  • Revenues from the company’s core business of chilled water increased 29 per cent in 2009 as three new plants (UAE University at Al Ain, Yas Island and T-7) came online during the year and several new customers were connected. Total billed capacity for chilled water in 2009 was 339,572 tonnes, an increase of 65,371 tonnes over 2008.
  • Three new cooling plants came online in 2009, bringing Tabreed’s total installed cooling capacity to 395,100 tonnes across 36 plants. In addition, 16 cooling plants and two plant expansions were under construction as of 31 December 2009, of which 13 plants and one plant expansion are expected to come online in 2010 adding a further 148,300 tonnes of cooling capacity.
  • Contracting revenues in 2009 derived from Tabreed’s 100 per cent owned contracting subsidiary Gulf Energy Systems, increased by 38 per cent over 2008, due to major piping network contracts including Sowah Island and Reem Island.
  • Revenues from the company’s building services division which includes Ian Banham & Associates, I2I and Cooltech declined by 46 per cent in 2009 over 2008 largely due to the regional real estate slowdown.

The results announced today are un-audited and as such are subject to change until the audit is completed.

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calendar_month June 30, 2025
Tabreed and CVC DIF to acquire Abu Dhabi’s PAL Cooling from Multiply Group
Existing portfolio includes eight long-term concessions currently serviced by five, state-of-the-art district cooling plantsSignificant growth potential, with expected operational connected load of approx. 600,000 refrigeration tonsAbu Dhabi, United Arab Emirates – 30 June 2025: CVC DIF, the infrastructure strategy of leading global private markets manager, CVC, and Tabreed, the world’s leading district cooling company, have entered a partnership to acquire PAL Cooling Holding from Abu Dhabi’s Multiply Group.The transaction, with an equity value of approximately AED 3.8 billion, includes three long-term concessions in the Abu Dhabi main island area and five long-term concessions on Al Reem Island, and remains subject to customary regulatory approvals. The concessions are serviced by five existing, sustainable district cooling plants and associated networks in Abu Dhabi, with connected capacity of 182,000 refrigeration tons (RT) as of December 2024. An additional plant is currently under construction and three more are in the planning phase. Together the nine plants and eight concessions are expected to represent approximately 600,000 RT.PAL was founded in 2006 and is a prominent player in the UAE district cooling market, catering to landmark residential, commercial and mixed-use developments. The company has eight, long-term concession agreements and partnerships with leading master developers, including Aldar Properties, Modon and Imkan. PAL is strongly positioned on Al Reem Island, which is a strategic destination now fully part of the ADGM free zone, the vibrant financial centre of Abu Dhabi, and is poised to benefit from the expected development ramp-up, with future network expansion already licenced by Abu Dhabi’s Department of Energy.Chairman of Tabreed, Dr Bakheet Al Katheeri, emphasised the significance of the partnership: “Tabreed is always looking to the future and ensuring we remain agile. The acquisition of PAL Cooling with CVC DIF aligns perfectly with our strategic objectives and readiness to adapt to Abu Dhabi's ambitious real estate projects. This year has been historic for Tabreed, with ventures like our Palm Jebel Ali JV and continued growth in Abu Dhabi. These steps position us to meet the UAE’s rising demand for sustainable cooling, driven by population growth and decarbonisation targets.”Gijs Voskuyl, Managing Partner at CVC DIF, said: “PAL Cooling services its clients under long-term, concession-based contracts, in a fast-growing urban environment. The company has a strong track record of developing and constructing high-quality and electrified district cooling plants to deliver reliable, energy-efficient cooling solutions. Building on CVC DIF’s long-term track record in the sector, we are delighted to partner with Tabreed, a leading district cooling company in the Middle East. Together with our partners, we are convinced that PAL Cooling is a high-quality investment that will provide our investors with solid returns, while offering the potential for long-term growth and sustainable value creation.” Chief Executive Officer of Tabreed, Khalid Al Marzooqi, added: “This is turning out to be a truly pivotal year for Tabreed. As we enter a new phase of growth in Abu Dhabi alongside partners, CVC DIF, the benefits brought by this acquisition will be substantial. As part of Tabreed’s portfolio, these additional plants will be operated and maintained by the world’s leading experts in sustainable cooling. The acquisition also serves to strengthen our already investment-grade status with safe, long-term concession agreements and assured future growth, evidenced by current and planned developments on Reem Island.”Özgür Önder, Head of CVC Middle East, said: “Our partnership with Tabreed, a regional leader with deep industry expertise, aligns perfectly with CVC’s commitment to investing in the UAE, backing mission-critical businesses that support sustainable development across the country.”CVC DIF’s investment focus and experience spans key sectors including Energy Transition, Digital Infrastructure, Utilities and Transport – areas that are critical to Tabreed’s strategic vision. Its expertise and investment approach makes CVC DIF an ideal partner for a transformative project of this scale.Commenting on the transaction, Samia Bouazza, Group CEO and Managing Director of Multiply Group, said: “The monetisation of PAL Cooling Holding is a deliberate step in our portfolio optimisation strategy, aimed at delivering superior returns to our shareholders. It reflects our ability to realise significant value from our assets while enhancing liquidity to fuel Multiply Group’s next phase of growth – both across our core verticals and on the global stage.”The deal was signed during a special ceremony at Multiply’s Abu Dhabi headquarters by Samia Bouazza, Group CEO and Managing Director of Multiply Group, Khalid Al Marzooqi, Chief Executive Officer of Tabreed and Özgür Önder, Head of CVC Middle East, in the presence of Tabreed’s Chairman, Dr Bakheet Al Katheeri.- ENDS –
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 –
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.”
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).