Tabreed's 2022 net income climbs 3% on revenue boost

Company says investment in new and existing markets supported its growth last year

Tabreed has been rapidly expanding its operations across the region. Reuters

The National Central Cooling Company, better known as Tabreed, reported a 3 per cent annual rise in its 2022 full-year net income as revenue rose amid a continued expansion in domestic and international markets.

Net profit attributable to equity holders of the parent company in the 12 months to the end of December climbed to Dh600 million ($163.4 million), Tabreed said in a filing on Tuesday to the Dubai Financial Market, where its shares are traded.

Revenue for the reporting period rose by 13 per cent annually to more than Dh2.2 billion, driven mostly by a 14 per cent increase in core chilled water revenue to Dh2.14 billion.

The company’s earnings before interest, tax, depreciation and amortisation jumped by 19 per cent to Dh1.23 billion.

“Targeted, strategic, carefully planned growth continues to manifest meaningful results that benefit shareholders, employees, clients and the districts and communities in which we operate,” chairman Khaled Al Qubaisi said.

Tabreed has been rapidly expanding its operations across the region to boost its portfolio. It acquired a majority stake in Emaar Properties' Downtown Dubai district cooling business for Dh2.48 billion in 2020.

The same year, it also bought two district cooling units on Saadiyat Island in Abu Dhabi from Aldar Properties in a Dh963 million deal to boost its asset base in the UAE.

Tabreed said 2022 was an exceptional year for the company as it continued to build on its network of assets in existing and new markets.

It also “heavily” invested in its home market to strengthen the existing UAE infrastructure.

In January last year, Tabreed doubled its concession capacity in Oman with the acquisition of a seventh district cooling plant, which services Al Mouj development in the sultanate.

Tabreed also announced its partnership with Egypt’s Gascool and Marakez for Real Estate Investment Company in February 2022 to provide district cooling services to the D5M mall in east Cairo.

The company last year also signed an agreement with Egyptians for Healthcare Services Company to build, own and operate a district energy plant that will supply cooling and heating services to CapitalMed in Cairo.

“During 2022, Tabreed’s objectives and intentions became crystal clear. Our medium and long-term strategy is being rolled out, with the company entering additional territories,” Tabreed chief executive Khalid Al Marzooqi said.

Founded in 1998, Tabreed owns and operates 86 district cooling plants across the GCC, including 75 in the UAE, three in Saudi Arabia, seven in Oman and one in Bahrain, in addition to other international projects and operations.

As part of its regional expansion, Tabreed also plans to enter new markets in North Africa and Kuwait, it said in June last year.

During 2022, Tabreed added 34,454 refrigeration tonnes (RT) of new connections in the UAE, 19,202 RT in Oman and 500 RT in Bahrain, increasing the company’s total connected capacity to 1.26 million RT.