Leading district cooling company Tabreed said its group revenue for H1 rose to AED1.08 billion ($294 million) from AED1.06 billion ($288 million) last year driven by business growth, sustained profitability margins and commitment to financial discipline.

 

Announcing its consolidated financial results for the six-month period ended June 30, 2024, Tabreed said its earnings before interest, taxes, depreciation and amortisation (ebitda) increase to AED603 million, which compares favourably to the AED590 million reported for H1. 

 

Tabreed's H1 ebitda margin increased year-over-year to 56%, thus demonstrating the company's ability to generate strong financial results while expanding its business.

 

The results demonstrate exceptional financial health driven by business growth, sustained profitability margins and a commitment to sound financial discipline, it stated. 

 

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 AED291 million, up 4% over last year.

 

According to Tabreed, the company generated impressive free cash flows of AED978 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 $207 million of its outstanding sukuk due in 2025, it stated.

 

In a new development, Tabreed said it has made key changes to its board of directors with Dr Bakheet Al Katheeri taking over as the new Chairman.

 

He succeeds Khaled Al Qubaisi, who stepped down from his post after a 7-year-long tenure.

 

On the company’s solid performance, Al Katheeri 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," he stated.

 

On his new role, Al Katheeri said: "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," he added.-TradeArabia News Service