Tabreed’s Financial Results for H1 2024 show Company Reaping the Rewards of Investment

calendar_month August 09, 2024

Rising year-on-year consumption volumes driving increased profits and improved EBITDA
Company strengthens financial position through prudent capital allocation, including repurchasing of Sukuk and increasing cash dividends
Appointment of Dr. Bakheet Al Katheeri as Chairman, along with new Board member Mansoor Mohamed Al Hamed

Abu Dhabi, United Arab Emirates – 9 August 2024: Tabreed, the UAE’s leading international district cooling company, has released its consolidated financial results for the first six months of 2024 and announced changes to its Board of Directors.

The results demonstrate exceptional financial health driven by business growth, sustained profitability margins and a commitment to sound financial discipline. Tabreed experienced an 8% year-on-year surge in consumption volumes, reflecting rising cooling demand during the summer and continued strategic expansion over the past 12 months. As a result of strong operating performance, the company delivered a normalised net profit before tax of AED 291 million – an increase of 4% compared to the same period last year.

H1 2024 also saw Tabreed’s earnings before interest, taxes, depreciation and amortisation (EBITDA) increase to AED 603 million, which compares favourably to the AED 590 million reported for H1 2023. Topline group revenue increased to AED 1.08 billion for H1 2024, compared to AED 1.067 billion during the first half of 2023. Tabreed’s H1 2024 EBITDA margin increased year-over-year to 56%, demonstrating the company’s ability to generate strong financial results while expanding its business.

The company generated impressive free cash flows of AED 978 million over the past 12 months, translating to a healthy yield of more than 10%. Demonstrating responsible management and prudent use of surplus cash, Tabreed further reduced its debt by 12% in the first half of the year by repurchasing an additional USD 207 million (AED 759 million) of its outstanding sukuk due in 2025.

Including the USD 33 million (AED 12 1 million) Sukuk repurchased in 2023, Tabreed has now repurchased a total of USD 240 million (AED 880 million) of the outstanding Sukuk. The buyback is part of Tabreed’s active management of its debt portfolio to optimise its funding cost and further strengthen its balance sheet. Simultaneously, the company increased cash returns to shareholders, evidenced by an increase of 15% year-on-year in cash dividends paid for the year 2023. During the annual general assembly held in March 2024, a cash dividend of 15.5 fils per share for 2023 was approved by Tabreed’s shareholders, which was subsequently paid in April 2024.

Additionally, during H1 2024, Tabreed completed and commissioned its new district cooling plant on Saadiyat Island, Abu Dhabi. With an ultimate capacity of 21,000 RT (refrigeration tons), the facility supplies sustainable cooling to residential and commercial communities. It is currently supplying 9,000 RT with plans to add 6,000 RT over the next two years.

Tabreed also kicked off its previously stated plans to increase the company’s international reach by sponsoring the key Big 5 Construct event in Cairo, Egypt. Senior management gave keynote addresses and participated in high-level discussions with planners, developers and government representatives, centred on district cooling being the only viable solution for new, sustainable cities.

Changes to Board of Directors

Tabreed is pleased to announce the appointment of Dr. Bakheet Al Katheeri as the new Chairman of its Board of Directors, succeeding Khaled Al Qubaisi, who has served as Tabreed’s Chairman since 2017.

Dr. Al Katheeri, who has been a member of the Board since 2022, is well-positioned to lead Tabreed through its next growth phase, with more than two decades of operational and investment expertise in the energy, infrastructure and industrial sectors. Currently, he serves as the Chief Executive Officer of Mubadala’s UAE Investments platform, where he is responsible for guiding the growth and strategic direction of a diverse portfolio of major UAE companies. Also, his previous experience with ADNOC and academic background covering Engineering, Applied Mathematics, and Environmental Science are highly relevant to the business.

Tabreed is also pleased to welcome Mansoor Mohamed Al Hamed as a new Board member. For more than 15 years, Mansoor has been instrumental in the strategic growth and development of Mubadala Energy, where he serves as the CEO for almost four years.

Financial highlights – six months ended 30 June 2024:

Group revenue increased to AED 1.08 billion (H1 2023: AED 1.067 billion)
EBITDA increased to AED 603 million (H1 2023: AED 590 million)
Normalised net profit before tax increased by 4% to AED 291 million (H1 2023: AED 280 million)

Net profit after tax is AED 269 million (H1 2023: AED 386 million, including one-off gains)

Operational highlights – six months ended 30 June 2024:

Tabreed’s consumption volumes increased by 8% year-on-year
Total connected capacity reached 1.308 million Refrigeration Tons (RT)
4,646 Refrigeration Tons (RT) of new customer connections added, mostly in the UAE

Commenting on the company’s H1 2024 results and his appointment, Dr. Bakheet Al Katheeri, Tabreed’s Chairman, said: “In the first half of 2024, Tabreed demonstrated a strong financial performance with increased consumption volumes driving higher profits and improved EBITDA. Our focus on prudent capital allocation has strengthened our financial position, ensuring we are ideally positioned for growth and expansion of our vital role in key infrastructure projects and decarbonisation across the UAE and the broader region.

“I am honoured to take over as Chairman from Khaled Al Qubaisi. Under his leadership, Tabreed has positioned itself as an agile and efficient company with a proven, resilient business model and commitment to partnerships and sustainable value creation for all its investors, partners and stakeholders. I look forward to working closely with the company’s executive leadership team to drive our company forward.”

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calendar_month October 13, 2025

Tabreed Closes its Two Largest Ever Transactions, Strengthening Growth and Long-Term Earnings Visibility

Acquisition of PAL Cooling and Palm Jebel Ali concession agreement expand regional footprint and long-term portfolioSuccessful acquisition of PAL Cooling expected to add 600,000 RT and boost connected capacity by 13%Completion of Palm Jebel Ali concession agreement marks Tabreed’s strategic expansion into one of Dubai’s most iconic developmentsAbu Dhabi, United Arab Emirates – 13 October 2025: Tabreed, the world’s leading district cooling company, today announced the successful completion of two transformational infrastructure transactions that significantly accelerate its growth trajectory and strengthen its long-term, concession-backed business model.Tabreed, alongside global infrastructure investor CVC DIF, has completed the acquisition of PAL Cooling Holding from Multiply Group, following regulatory approvals. Within the past four weeks Tabreed also finalised a landmark concession agreement with Dubai Holding Investments to provide district cooling services to Palm Jebel Ali – one of the emirate’s most eagerly anticipated large-scale developments.These milestones represent a major acceleration in Tabreed’s growth strategy, boosting operational capacity, diversifying its concession portfolio and enhancing long-term cash flow visibility. PAL Cooling Acquisition: Expanding Scale and Strategic ReachThe PAL Cooling transaction, with an equity value of AED 3.87 billion, is expected to add approximately 600,000 refrigeration tons (RT) of connected capacity across eight exclusive concessions on Abu Dhabi’s main island and Al Reem Island, which is now fully incorporated into the ADGM free zone. The portfolio is currently served by five operational plants, with one more under construction and three in advanced planning stages.The acquisition immediately increases Tabreed’s pro forma connected capacity by 13% to 1.55 million RT and introduces long-tenor contracts averaging 25 years with high-quality offtakers including Aldar, Modon and Imkan.“Closing this acquisition demonstrates Tabreed’s commitment to sustainable growth, disciplined investment and long-term value creation,” said Dr Bakheet Al Katheeri, Chairman of Tabreed. “These are strategic infrastructure assets with strong fundamentals and meaningful future upside, reflecting our ability to execute and scale in line with national development and decarbonisation priorities.”“This transaction strengthens our earnings profile and operational presence in Abu Dhabi,” added Khalid Al Marzooqi, CEO of Tabreed. “We’re adding long-term, stable contracts with blue-chip developers and enhancing our platform for growth, now and in the near future. Beyond the numbers, it demonstrates how Tabreed continues to build the essential, sustainable infrastructure that underpins the UAE’s next phase of development.”Palm Jebel Ali: Strategic Growth in DubaiSeparately, Tabreed has completed its long-term district cooling concession with Dubai Holding Investments for Palm Jebel Ali. The AED 1.5 billion project will be executed in phases via a joint venture (Tabreed 51%, Dubai Holding Investments 49%) and is expected to deliver 250,000 RT of cooling capacity. “Palm Jebel Ali is a transformative development, and we’re proud to play a central role in shaping its sustainable infrastructure,” said Al Marzooqi. “This partnership reflects our commitment to future-ready urban environments powered by world-class district cooling. It also strengthens our presence in Dubai’s high-growth developments, creating a dynamic platform for future projects and reinforcing our position as the world’s leader in sustainable cooling.”Strengthening Value Creation and Financial ResilienceTabreed will operate and maintain all assets under both agreements. The transaction structures ensure capital efficiency – PAL Cooling acquisition is funded through equity contribution by both partners and non-recourse, project-level debt, while Palm Jebel Ali is being delivered through a joint venture fully consolidated by Tabreed.PAL Cooling has demonstrated strong financial performance, with a 7.5% revenue CAGR and ~60% average EBITDA margin in the past three years. Approximately 60% of revenues are derived from fixed capacity charges under long-term agreements, providing stable and predictable cash flows.These transactions align with Tabreed’s broader financial strategy. The company recently distributed its first-ever interim dividend, reflecting confidence in its strong balance sheet and long-term earnings outlook. The addition of two scalable, concession-backed assets further strengthens its ability to sustain and grow shareholder returns in the long term.“Together, these transactions represent a defining moment for Tabreed,” concluded Al Katheeri. “With deeper presence in Abu Dhabi and Dubai, greater earnings visibility and a diversified asset base, Tabreed is well-positioned to deliver long-term value to shareholders and national stakeholders alike.”

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calendar_month September 22, 2025

Tabreed and Johnson Controls Enter Long-Term Agreement for Development and Supply of Next Generation Cooling Technology

Tabreed gearing up for significant expansion, securing supply of energy efficient chillersCooling technology and lifecycle models aligned with region’s climate neutrality goalsAbu Dhabi, United Arab Emirates – 22 September 2025: As part of a joint commitment to advancing global best practices in district cooling, Tabreed, the world’s leading district cooling company, and Johnson Controls, the global leader for smart, healthy and sustainable buildings, have signed a framework agreement to accelerate the development and deployment of next-generation cooling technologies. Tabreed is working on multiple long-term projects, many of which will be covered by the agreement. The collaboration targets measurable gains in energy efficiency, reliability and total cost of ownership, while supporting regional climate neutrality strategies and corporate ESG priorities. It will focus on deploying next generation centrifugal chillers to enhance system efficiency and reduce climate impact, with performance analytics provided via Johnson Controls’ platforms for real-time optimisation and reduced downtime. The agreement was signed during a special ceremony hosted at Tabreed’s Abu Dhabi headquarters, by Tabreed’s Chief Executive Officer, Khalid Al Marzooqi, and Johnson Controls’ Vice President and President EMEA, Richard Lek.Following the ceremony, Al Marzooqi said: “Our company has entered a new, exciting chapter of unprecedented growth, which is aligned with our long-term strategy. We have multiple projects either in progress or planned for the near future, and this agreement helps both parties by securing supplies of essential equipment for large-scale infrastructure. By pairing Tabreed’s operational excellence with Johnson Controls’ advanced chiller technologies, we will bring tangible benefits to customers and communities alike through unrivalled energy efficiency and reliability.”Richard Lek added: “Collaboration with Tabreed allows us to demonstrate how proven technologies and data-driven services can raise the performance bar for district cooling – at scale. Together we’ll help better meet the demand for cooling in rapidly growing urbanisations while reducing power consumption and emissions, and improving quality of life.”This collaboration will be built on two main pillars. Firstly, advanced chiller technology, where Johnson Controls will provide a wide range of large-capacity chillers with variable-speed drives and modular systems for flexible loads, all engineered to reduce energy use and maintenance requirements while optimising space within Tabreed’s district cooling plants. Secondly, end-to-end lifecycle services will cover design and engineering support, commissioning and retro-commissioning, performance guarantees based on KPIs, upgrades and retrofits, and remote monitoring through network operations centres to extend asset life and reduce overall ownership costs.The framework aligns with global sustainability goals by prioritising energy-efficient, low-emission technologies, adopting refrigerants with a lower environmental impact, while applying circular-economy and resource-efficiency principles that connect plant-level improvements to wider policy decarbonisation outcomes.According to the IEA - International Energy Agency, operational energy used in buildings globally represents about 30% of final energy consumption. District cooling, which centralises cooling production and distribution, offers a more sustainable and cost effective solution than conventional air conditioning as it significantly reduces energy consumption, lowers peak power demand and minimises the environmental impact of cooling.

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calendar_month September 16, 2025

Tabreed Shareholders Approve First-Ever Interim Dividend as First-half Revenue Reaches All-Time High Driven by Capacity Growth

First-ever interim dividend of 6.5 fils per share, representing AED 184.9 million, approved for H1 2025Revenue rose 3% year-on-year to AED 1.11 billion in H1 2025, the highest first-half in the company’s history, driven by higher cooling demand and capacity additions across key marketsTabreed adds a record 41.6k RT in H1 2025 – almost twice the capacity added in full-year 2024 – to reach 1.37 million RT with major contributions from the UAE and Saudi ArabiaPAL Cooling acquisition and Palm Jebel Ali concession, the two largest strategic deals in Tabreed’s history, expand total site capacity to ~2.6 million RT and reinforce long-term, capital-efficient growthAbu Dhabi, United Arab Emirates – 15 September 2025: National Central Cooling Company PJSC (DFM: TABREED / ISIN: AEA002201018), the world’s leading and most diversified district cooling company, today confirmed shareholder approval at its General Assembly for an interim dividend of 6.5 fils per share, representing AED 184.9 million, for the first half of 2025. This marks the first interim dividend in Tabreed’s 27-year history, reflecting the company’s record first-half performance, with revenue rising 3% year-on-year to AED 1.11 billion and net profit reaching AED 276 million, supported by strong cooling demand and significant capacity growth across key markets.Tabreed’s growth momentum continued in the first half of 2025, with total connected capacity reaching 1.37 million RT following a record 41.6k RT of new connections, almost double the capacity added in all of 2024. Strong contributions from the UAE and Saudi Arabia underline the company’s position as a truly cross-regional operator and set the stage for the next phase of growth. At the same time, Tabreed advanced its long-term strategy with two landmark developments, the PAL Cooling acquisition and the Palm Jebel Ali concession. Together, these transactions represent the largest in the company’s history, expanding total site capacity to approximately 2.6 million RT and strengthening the foundation for capital-efficient growth, recurring cash flows, and a platform capable of delivering sustained value well beyond 2025.Commenting on the milestone dividend, Dr. Bakheet Al Katheeri, Tabreed’s Chairman, said: “Tabreed continues to build on its strong foundations, combining record first-half results with strategic milestones that reinforce the scalability of our platform. The approval of the company’s first-ever interim dividend reflects this strength and our commitment to shareholders, underlining the confidence we have in delivering sustainable long-term value. With capacity growth across the UAE and Saudi Arabia, alongside landmark transactions such as the PAL Cooling acquisition and Palm Jebel Ali concession, Tabreed is well positioned to pursue its growth agenda while maintaining capital discipline and a clear focus on shareholder returns.”Robust free cash flow and disciplined capital allocation supported both growth investment and shareholder returns in the first half of 2025. The successful issuance of a USD 700 million Green Sukuk, under the company’s Green Finance Framework, strengthened the balance sheet and enhanced liquidity, underpinned by investment-grade credit ratings from Moody’s and Fitch. At the same time, Tabreed is embedding sustainability across its operations, from deploying renewable energy at select plants to piloting low carbon cooling solutions, reinforcing its role as a long-term partner in the region’s energy transition.Key DatesGeneral Assembly approval: 15 September 2025Last entitlement date (last day to purchase): 23 September 2025Ex-dividend date: 24 September 2025Record date: 25 September 2025Dividend payment: On or before 15 October 2025 - ENDS -

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calendar_month September 11, 2025

Tabreed Connects its Sustainable Cooling to Dubai’s City Tower 1

Supplying 5,300 RT to 93 floors of premium residential, retail and business spaceAbu Dhabi, United Arab Emirates – 11 September 2025: Tabreed, the world’s leading district cooling company, is pleased to announce a significant new connection to one of its networks in Dubai: The93-storey City Tower 1, a development by H&H, now being supplied with 5,300 Refrigeration Tons (RT) of sustainable cooling from Tabreed’s existing DC plant in the Al Satwa district.Standing at 362.8 metres, opposite the iconic Emirates Towers and the Museum of the Future on Sheik Zayed Road, City Tower 1 features 695 residences ranging from studio to 4-bedroom apartments, four floors of office space, two retail spaces, a gym, an indoor play area for children, an outdoor playground, pools for adults and children, a mini soccer field and two padel courts.Khalid Al Marzooqi, Chief Executive Officer of Tabreed, said: “Tabreed is proud to contribute to the development of the UAE’s most iconic real estate projects by delivering sustainable, reliable solutions that support national growth and energy efficiency objectives. Connecting City Tower 1 to one of our pre-existing networks clearly demonstrates our commitment to Dubai’s continued progress. “Our presence in the city is unmistakable, with Tabreed’s Downtown Dubai network supplying Burj Khalifa, Dubai Mall, Dubai Opera and many other landmark developments with sustainable cooling. Tabreed is a force for good in the UAE and continues to play an essential role in enabling the region’s urban transformation while creating lasting value for developers, investors and communities alike.”Miltos Bosinis, Chief Executive Officer, H&H, added: “City Tower 1 is a landmark addition to the Sheikh Zayed Road skyline and a reflection of H&H’s ambition to redefine Dubai’s urban landscape. With this development, we are introducing a new standard of living that combines our signature quality with a level of service designed for today’s discerning tenants. City Tower 1 speaks directly to the future of the city; innovative, connected and uncompromising in excellence.To ensure comfort and efficiency, H&H partnered with Tabreed, the UAE’s leading district cooling provider, to install a state-of-the-art cooling system. This collaboration highlights H&H’s commitment to building elite destinations supported by innovative infrastructure solutions.”This latest milestone follows a period of record growth for Tabreed, with 2025 seeing two of the biggest deals in its 27-year history. In June, Tabreed announced the acquisition of PAL Cooling Holding in partnership with CVC DIF, adding more than 182,000 Refrigeration Tons (RT) of connected capacity across Abu Dhabi and securing a long-term growth pipeline of up to 600,000 RT. In May 2025, Tabreed also secured an exclusive 250,000 RT concession at Palm Jebel Ali, in partnership with Dubai Holding Investments, further cementing its position as a critical infrastructure partner for the region’s most ambitious developments.

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