Empower approves $116m dividend for second half of 2022

It represents 42.5% of the company's paid-up capital

Empower's net profit for the 12 months to the end of December rose to Dh1 billion. Bloomberg

Emirates Central Cooling Systems Corporation, known as Empower, said it will pay a cash dividend of Dh425 million ($116 million) to its shareholders for the second half of last year.

Amounting to almost 4.25 fils per share, representing an equivalent to 42.5 per cent of the company's paid-up capital, the dividend was approved during the company’s general meeting on Wednesday, Empower said in a statement to the Dubai Financial Market (DFM), where its shares are traded.

The dividend will be paid to shareholders next month, the company said.

“Empower is moving forward with its expansion, extending the reach of its services and developing its unique business model that enabled it to become the world's largest provider of eco-friendly district cooling services,” said Saeed Al Tayer, chairman of Empower.

Empower was established by royal decree as a joint venture in 2003 to provide energy through its plants to Dubai's property sector.

Last month, the company reported an increase of about 7 per cent in its 2022 net profit as it consolidates its position in the UAE and explores growth opportunities in the region.

Net profit for the 12 months to the end of December rose to Dh1 billion, from Dh935.8 million at the end of 2021.

Revenue for the reporting period stood at Dh2.79 billion, up from Dh2.46 billion at the end of 2021.

Empower, which started trading on the DFM in November, sold 2 billion shares through its initial public offering, or 20 per cent of its share capital.

The Dubai Electricity and Water Authority and Emirates Power Investment retain 56 per cent and 24 per cent of Empower’s existing share capital, respectively, following the listing.

Empower raised more than Dh2.6 billion from its offering, which drew strong demand from local, regional and international investors and was more than 47 times oversubscribed.

The UAE Strategic Investment Fund, Shamal Holding and the Abu Dhabi Pension Fund were cornerstone investors in the IPO, with a total commitment of up to Dh335 million.

Empower expects growth to continue this year and the company is “determined to increase its market share within the country, driven by an innovative strategy and a unique and sustainable business model”, said its chief executive Ahmad bin Shafar.