Tabreed Releases Full Year Results for 2024, Reporting Increased Revenue, Profits and Stronger EBITDA

calendar_month February 14, 2025

EBITDA and Net profit increases by 5% and 32% respectively over previous year
Board of Directors recommends dividend payment of 15.5 fils per share

Abu Dhabi, United Arab Emirates – 13 February 2025: Tabreed, the UAE’s leading international district cooling company, today released its consolidated financial results for the year 2024, reporting a revenue of AED 2.434 billion and a net profit before tax of AED 624 million, representing a 4% increase over 2023 (excluding one-offs). EBITDA increased by 5% year-on-year to AED 1.252 billion, with an improved margin of 51%, while net profit after tax stands at AED 570 million, up 32% compared to AED 431 million in 2023.

Increased revenue was mainly driven by growth in consumption volumes, which increased by 5% to 2.66 billion refrigeration ton hours (RTH). Connected capacity increased by 23,756 Refrigeration Tons (RT), bringing Tabreed’s total connected capacity to 1.325 million RT. Growth in connected capacity was largely on account of expansion in existing concessions and commissioning of two new greenfield plants in the UAE and Oman respectively during 2024, while expanding capacity at its existing plants, including in international markets of India and Egypt, to meet the growing demand from customers.

The company generated strong cash flows, with AED 1.2 billion from operations after working capital changes and AED 970 million in free cash flows. Surplus cash was used to optimize the balance sheet and reduce debt by repurchasing an additional USD 207 million (AED 759 million) of its outstanding sukuk due in 2025. Including the USD 33 million (AED 121 million) Sukuk repurchased in 2023, Tabreed has now repurchased a total of USD 240 million (AED 880 million) of the outstanding Sukuk. The company’s proactive debt management led to saving of 15% in net financial costs during 2024. Tabreed’s balance sheet is stronger than ever, with an improved net debt to EBITDA ratio of 3.7x compared to 4.1x at the end of 2023.

Acknowledging the company’s strong overall performance, financial resilience and positive outlook, Tabreed’s Board of Directors has recommended a dividend payment of 15.5 fils per share in cash, once again reinforcing its unwavering commitment to maximising returns for its shareholders. Over the past five years, dividend per share paid by Tabreed has increased at a compounded annual growth rate of 8%.

New connections totalling 23,576 Refrigeration Tons (RT) were added to Tabreed’s portfolio of 92 plants during 2024, in the UAE, Saudi Arabia, Oman, Egypt and India. The company spent much of 2024 laying the foundations for international expansion, sponsoring and participating in multiple, strategically important conferences and events in Egypt and Southeast Asia.

During September, Tabreed once again sponsored World Utilities Congress as exclusive ‘Cooling Partner’ and led the conversation around cooling in numerous high-level panel discussions and technical presentations, also drawing praise from organisers for the design and execution of the company’s stand. Towards the end of the year, Tabreed sponsored the UNEP-led Cool Coalition’s pavilion at COP29 in Baku, Azerbaijan, again building awareness of the crucial role played by district cooling in preventing carbon emissions while catering for the needs of growing global populations.

Closer to home, in November Tabreed sponsored the second annual RAK Energy Summit as ‘Cooling Partner’, making good on the company’s intentions to service the requirements of developers in the Northern Emirates. The two-day event saw Tabreed’s CEO and other senior executives directly engage in high-level discussions with Ras Al Khaimah’s leadership and real estate executives, to explore opportunities for growth as champions of sustainability.

There were two changes to Tabreed’s Board of Directors during 2024, with the appointment of Dr Bakheet Al Katheeri as Chairman and Mansoor Mohamed Al Hamed as a new Board member.

Financial highlights – 12 months ended 31 December 2024:

Group revenue increased to AED 2.434 billion (2023: AED 2.415 billion)
EBITDA increased by 5% year-on-year to AED 1.252 billion (2023: AED 1.198 billion)
Net profit before tax increased by 4% to AED 624 million (2023: AED 603 million excluding one-offs)
Net profit after tax increased by 32% to AED 570 million (2023: AED 431 million)

Operational highlights – 12 months ended 31 December 2024:

Total connected capacity increased to 1.325 million Refrigeration Tons (RT)
23,756 RT of new customer connections added
Consumption volumes increased by 5% year-on-year

Environmental highlights – 12 months ended 31 December 2024:

2.64 billion kilowatt hours saved across the GCC – enough to power approximately 150,000 homes every year
Prevented the release of 1.58 million metric tons of CO2 into the atmosphere, which is equivalent to the removal of approximately 343,000 vehicles from the roads annually
Achieved ‘Verified Carbon Standard’ at one of the plants, making Tabreed eligible to trade carbon credits as an emissions preventer

Following publication of these results, Dr Bakheet Al Katheeri, Chairman of Tabreed, said:

“Tabreed is a resilient and world class leader in district cooling. The company continues to deliver strong financial performance evidenced by a 15.5 fils per share dividend that matches the record set in 2024.

“Tabreed’s shareholders recognise that the company is a prudent investor, consistently delivering tangible benefits to shareholders and the economy. Demand for cooling is rapidly growing and Tabreed’s unrivalled expertise means it is well placed to meet market requirements with speed, agility and sustainability, perfectly aligned with the UAE’s ‘Net Zero by 2050’ initiative.”

Tabreed’s Chief Executive Officer, Khalid Al Marzooqi, added: “With every passing year, this company goes from strength-to-strength, providing safe, reliable and efficient cooling to its customers and steady returns for investors and stakeholders alike. Our core business matters more now than ever and increased uptake of district cooling is imperative in our drive towards net-zero – a utility that’s essential for progress, for people, industries and communities alike.

“Tabreed has been the world’s leader in this remarkable industry for nearly three decades and its future looks promising, brighter than ever. Our year end results for 2024 provide further evidence of Tabreed’s stability and long-term sustainability. The Company’s financial position has significantly improved over the past few years, laying strong foundations for the future expansion in both UAE and international markets, and I look forward to further achievements throughout 2025.”

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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 –

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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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