- Board of Directors recommends increasing dividend by 23% to 8 fils per share
National Central Cooling Company PJSC (DFM: Tabreed), the leading regional district cooling utility company, today released its audited 2017 financial results. The Company ended the year with a robust performance, adding 43,900 RT to its cooling capacity across the GCC in 2017. Tabreed posted 9% percent higher net profit, reaching AED 400.1 million. Based on the strong results, Tabreed’s Board of Directors recommended increasing cash dividends for 2017 to 8 fils per share (up from 6.5 fils per share for 2016).
Financial highlights – twelve months ended 31 December 2017:
- Net profit attributable to the parent increased by 9 percent to AED 400.1 million (2016: AED 367.4 million)
- Group revenue increased by 9 percent to AED 1,399.4 million (2016: AED 1,279.9 million)
- Core chilled water profit from operations increased by 10 percent to AED 427.2 million (2016: AED 387.3 million)
- EBITDA increased by 8 percent to AED 628.4 million (2016: AED 583.2 million)
- Share of results of associates and joint ventures increased by 10 percent to AED 128.8 million (2016: AED 0 million)
Operational highlights – twelve months ended 31 December 2017:
Total Group connected capacity across the GCC reached 1,092,300 RT, with 43,900 RT of new customer connections added in the last 12 months as follows:
- 24,300 RT in the United Arab Emirates
- 3,000 RT in Bahrain
- 16,600 RT in other GCC countries
- Over 1.53 billion kilowatt hours of electricity was saved across the GCC – enough energy to power approximately 51,000 homes every year
- This prevented the release of almost 768,000 tons of carbon dioxide – the equivalent of eliminating the emissions of 153,600 vehicles annually
Other developments in 2017 included the successful completion of the investment by ENGIE, the global energy company, which acquired 40% of the shares in Tabreed for approximately AED 2.8 billion. Tabreed also obtained the certification of Tabreed’s stock as Shari’a compliant, which is expected to contribute to an expanded shareholder base.
Commenting on the results, Khaled Abdulla Al Qubaisi, Tabreed’s Chairman, said: “The strength of Tabreed’s performance in FY 2017 reflects a clear strategic focus, which enabled the company to extend its footprint and regional market leadership. Tabreed achieved another year of healthy sales with net profit growth of 9% to AED 400.1 million. Furthermore, Tabreed welcomed global energy leader ENGIE to the group during the year, which will support the company in further capturing the growing regional district cooling market opportunities, aligned with the rapid urbanization witnessed across the GCC region.”
“In line with our commitment to continue delivering shareholder value and based on our strong performance in 2017, the company’s Board of Directors will recommend increasing cash dividends to 8 fils at the upcoming annual general assembly,” added Al Qubaisi.
Jasim Husain Thabet, Tabreed’s Chief Executive Officer, added: “Tabreed continued on its solid growth path in 2017 with revenues of AED 1,399.4m, driven by new capacity additions. As we look forward to 2018 and beyond, we pursue our commitment to support the region in meeting its growing cooling needs with Tabreed’s reliable and cost-efficient solutions. With two decades of leadership and experience, we are also well poised for continued growth and success in enabling our customers to adopt and optimize energy-efficient cooling systems, while remaining focused on achieving strong returns for our shareholders.”
Tabreed is a partner of choice for organizations across the GCC in providing environmentally friendly district cooling solutions that support the region’s energy sustainability. With 72 district cooling plants located throughout the region, Tabreed currently delivers over 1 million refrigeration tons to key developments in the region including iconic infrastructure projects such as Abu Dhabi’s Al Maryah Island, Yas Island, Sheikh Zayed Grand Mosque, Dubai Metro, Dubai Parks and Resorts, and the Jabal Omar Development in the Holy City of Mecca, Kingdom of Saudi Arabia.