UAE’s Tabreed reports a 16.5% increase in 2020 net income to $150mln

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ABU DHABI – The National Central Cooling Company (Tabreed) on Monday released its audited financial results for 2020. Tabreed reported a 16.5 percent increase in 2020 net income to AED550 million.

The results showed that Tabreed added 39.6k Refrigeration Tons (RT) of organic capacity growth and 181.5k RT of inorganic capacity additions, resulting in the delivery of 1,403,819 RT of cooling capacity at the end of the calendar year.

Tabreed’s Board of Directors have recommended a return of value to shareholders for 2020 through the combination of a cash dividend of 5.75 fils per share plus a bonus share issue of 1 share for every 45 shares held. This equates at current share price to roughly 11.5 fils/share and represents a 10 percent increase on 2019 dividend.

This cash plus equity dividend in 2020 reflects the Board’s intention to prioritise returning value to shareholders and positions Tabreed strongly to secure further growth opportunities.

Tabreed announced a number of notable achievements during 2020, including the acquisition of the world’s largest district cooling scheme in Downtown Dubai with a total capacity of 235,000RT and two concessions with a total capacity of 88,000RT in Saadiyat Island.

In October, Tabreed raised US$500 million through a seven-year, 2.5 percent coupon bond issuance that was oversubscribed at almost five times its initial size. The company also received several industry awards in 2020.

The company’s net income – ended 31st December, 2020 – increased by 16.5 percent to AED550 million (2019: AED 472 million). The group revenue increased by 14.5 percent to AED1,741 million (2019: AED 1,520 million) EBITDA increased by 27 percent to AED970 million (2019: AED763 million).

The Total Group connected capacity across the total portfolio increased to 1,403,819 Refrigeration Tons (RT), and 221.1k RT of new customer connections added.

Also, six new plants added through acquisitions of Downtown Dubai and Saadiyat Island.

In terms of environmental impact, the company recorded 12,842,023 man-hours without a lost-time injury. In addition, 2.26 billion kilowatt/hours saved across the GCC – enough to power 128,443 homes every year.

Prevented the release of 1.35 million metric tons of CO2 into the atmosphere, which is equivalent to the removal of 293,129 vehicles from the roads annually.

Also, the company launched its “TabreedCares” initiative in 2020, through a number of individual programmes run across Tabreed’s operations in collaboration with partners across the region. This included financial contributions to help facilitate testing and aid local communities, in addition to technical assistance to support operational precautionary measures at select sites.

Commenting on the results, Khaled Abdulla Al Qubaisi, Tabreed’s Chairman, said, “Tabreed has become an international powerhouse in district cooling, with 86 plants and investments in six countries. Our financial and operational achievements this past year allowed us to achieve impressive results despite a challenging operating environment, solidifying Tabreed’s growth story and its reputation for leading edge innovation within the district cooling sector.” With 86 district cooling plants, Tabreed currently delivers over 1.404 million RT to key developments, including iconic projects such as the Burj Khalifa, Dubai Opera, The Dubai Mall, Sheikh Zayed Grand Mosque, Al Maryah Island, Yas Island, Dubai Metro, the Bahrain Financial Harbour and the Jabal Omar Development in the Holy City of Mecca in the Kingdom of Saudi Arabia.

© Copyright Emirates News Agency (WAM) 2021.