One of UAE’s most resilient companies maintains robust operations, aims to expand portfolio
Abu Dhabi, United Arab Emirates – 15 February 2022: National Central Cooling Company PJSC (DFM: Tabreed), today released its consolidated financial results for 2021, reporting a net profit of AED 585.2 million – an increase of 6% compared to its 2020 performance. In addition, Tabreed’s Board of Directors is pleased to recommend a dividend of 12.0 fils per share, to be paid 50% in cash and 50% through a bonus share issue of 1 share for every 40 shares held. This dividend represents an increase on last year in line with the growth of the business, while retaining availability of growth capital within the business.
Throughout 2021, Tabreed continued to execute its long-term plans for sustainable growth. The company streamlined its operations while expanding within the UAE, adding new connections in its Downtown Dubai District Cooling Plant network and acquiring full ownership of Abu Dhabi’s 80,000 Refrigeration Ton (RT) Al Maryah plant from from joint venture partner, Mubadala Infrastructure Partners (MIP).
In April the company showcased its all-new corporate identity, during a spectacular light display against the side of the world’s tallest building, the Burj Khalifa, broadcast around the world. Over the subsequent months, Tabreed has benefitted from increased public awareness, bolstered by recognition and accolades from highly respected organisations resulting in several notable awards for business excellence, including the prestigious Sheikh Khalifa Excellence Award’s Silver Category in the Services Sector, as well as two separate awards from the International District Energy Association (IDEA).
Market conditions remained volatile during the year, as the pandemic continued to impact industries around the region and beyond, Tabreed’s resilience and impeccable reliability more vital than ever for customers dependent on uninterrupted service. Tabreed continued its proactive approach to staff welfare, too, with its Employee Assist Programme (EAP), which provides continuous support on a wide range of issues, including mental and physical wellbeing.
The company’s green credentials came to the fore during 2021, too, exemplified by its participation in the global COP26 environmental summit and the introduction of its new Green Finance Framework, which puts Tabreed at the heart of the region’s current and future sustainable infrastructure projects. In 2021 the company also published its annual ESG Report, detailing its 2020 environmental, social, and governance performance in the communities in which it operates, providing greater insight than ever into Tabreed’s activities and achievements.
As 2021 drew to a close, Tabreed finalised a significant strategic partnership with the International Finance Corporation (IFC), a member of the World Bank Group and the largest global development institution focused on the private sector in emerging markets. Under this partnership, the current Tabreed India is to be transferred to a new, Singapore incorporated company owned 75% by Tabreed and 25% by IFC. This company has a clear mandate to invest in projects of up to approximately $400 million over the next five years, targeting a portfolio of approximately 100,000 refrigeration tonnes (RT) across India.
Financial highlights – 12 months ended 31 December 2021:
- Group revenue increased by 12% to AED 1.95 billion (2020: AED 1.7 billion)
- Core chilled water revenue increased by 12% to AED 1.88 billion (2020: AED 1.69 billion)
- EBITDA increased by 7% to AED 1.03 billion (2020: AED 970.1 million)
- Net profit attributable to the parent increased by 6% to AED 585.2 million (2020: AED 550.3 million)
Operational highlights – 12 months ended 31 December 2021:
- Total connected capacity increased to 1,210,096 Refrigeration Tons (RT), after adjusting for the divestment of Qatar Cool
- 40,495 Refrigeration Tons (RT) of new customer connections added
- Successful integration of two concessions totalling 88,000 RT on Saadiyat Island, with closing achieved during April 2021
- Tabreed achieved a record 14,738,690 hours worked without a single lost time incident (LTI), the most recent occurring in July 2015
Environmental impact highlights – 12 months ended 31 December 2021:
- 2.33 billion kilowatt hours saved across the GCC – enough to power 132,590 homes every year
- Prevented the release of 1.39 million metric tons of CO2 into the atmosphere, which is equivalent to the removal of 302,592 vehicles from the roads annually
Commenting on the results, Khaled Abdulla Al Qubaisi, Tabreed’s Chairman, said: “Once again Tabreed’s year-end results are evidence that the company is in the safest possible hands and the company’s net income builds on our recent history, which has seen average annual growth of 10% since the beginning of 2017. Our prudent, strategy-led investment programmes continually produce numbers that prove Tabreed is on the right track, with sustainability at the core of our operations and financial outlook. Tabreed is a remarkable, home-grown UAE success story and its position in the market as the world’s leading expert in district energy is one we can all take great reassurance from, as we continue our drive toward a sustainable future for all.”
Khalid Abdulla Al Marzooqi, Tabreed’s Chief Executive Officer, added: “Perhaps more than at any other time in the company’s history, 2021 was the year Tabreed was regionally and globally recognised for the vital role it plays in achieving ambitious environmental and carbon reduction targets. Our relentless pursuit of operational excellence and energy efficiency positively impacts everyone concerned – our shareholders, stakeholders, customers and staff, as well as the communities we serve. Tabreed looks to the future with genuine optimism as numerous long-term strategic plans come to fruition, and it’s a company I am proud to be leading into 2022.”