Emirates Central Cooling Systems Corporation (Empower), the world's largest district cooling services provider, posted first-half (H1) net profit after tax of AED390 million ($106.2 million) and revenues of AED1.35 billion ($370 million).

 

The company’s EBITDA was at AED693 million growing 6.0% in 2024 compared to the same period of last year. Empower earned AED428 million as profit before tax with a growth of 6.3% compared to the same period of 2023. 

 

Revenue and profit drivers 

“Empower’s robust financial results for the first half of 2024 demonstrate continued success, contributing to Dubai’s economic expansion and delivering enhanced returns to shareholders,” said Ahmad Bin Shafar, CEO of Empower.

 

Bin Shafar explained that Empower's sustainable financial revenues are driven by increasing demand for its services primarily due to two factors. First, the real estate developers and building owners are increasingly adopting environmentally friendly practices, seeking cooling systems that protect natural resources, reduce emissions, optimise energy consumption, and lower costs.  

 

The second factor fuelling the growing demand for Empower's district cooling services is the increasing occupancy rates in real estate projects of various uses, led by the residential segment, and the continuous addition of new projects to the company’s portfolio. 

 

These factors combined have contributed to the diversity of Empower’s customer base, which includes residential, commercial, healthcare, hospitality, retail, education, entertainment and other sectors.

 

Sustainable financial performance 

In its statement to Dubai Financial Market (DFM), Empower said that its consolidated revenues for the last twelve months (July 23 to June 24) were AED3.16 billion, a growth of 10.4% compared to AED2.86 billion during the period July 2022 to June 2023 and EBITDA of AED1.50 billion for the period July 23 to June 24 recorded a growth of 5.5% compared to AED1.42 billion for the period from July 2022 to June 2023. 

 

A half-year of achievements 

The first half of 2024 saw a significant increase in Empower's business, with 56 new contracts signed to provide more than 58,300 refrigeration tons (RT) to reach a total contracted capacity of more than 1.72 million RT. The new contracts signed to provide Empower’s world-class cooling services to various projects and buildings in Dubai distributed across different areas include 19,000 RT in Jumeirah Village, 7,200 RT on Sheikh Zayed Road, 6,900 RT in Meydan, 6,300 RT in Jumeirah Lakes Towers, and in other areas within the emirate. 

 

Empower’s total connected capacity has increased to more than 1.53 million RT with an addition of over 20,000 RT during the first half of the year.  

 

In April, Empower signed an agreement with the Al Habtoor Group to supply the world's largest residential icon, Al Habtoor Tower, with 7,200 RT (equivalent to 75% of the peak cooling capacity of the world's tallest building, Burj Khalifa). Expected to have a population of over 5,000 people, the tower will start receiving Empower's world-class services during the year 2025.

 

Empower also announced an increase in the volume of consumption of its district cooling services (Refrigeration Ton hours-RTh) by 20% during the first half of 2024 compared to the same period of last year due to the addition of DXB Airport and rising demand from its well-diversified customer base.

 

Electronic registrations of new customers from the government and private sectors for availing Empower services have also shown a high growth and achieved 41% increase over the past five years from 2019 to 2023. 

 

Bill payments through the smart digital channels offered by Empower and its strategic partners, banks and financial institutions reached 427,114 transactions this year, an increase of 11% compared to the same period last year.

 

NOC services

As part of its efforts to facilitate a smooth flow of the businesses and enhance efficiency and productivity, Empower has processed 19,675 applications for NOC services during the period January to June 2024, an increase of 21% compared to the same period in 2023. 

 

The initiative aims to make it easier for consultants and contractors to obtain the company’s approvals to submit applications, minimise or avoid abuses, damage and penalties, and save time and effort.

 

Also, during the period, Empower commenced the connection of the Al Wasl Tower on the Sheikh Zayed Road to its district cooling network and completed supplying all phases of the project with a cooling capacity of up to 3,900 RT.

 

Empower and the Ministry of Energy and Infrastructure signed a Memorandum of Understanding (MoU) on cooling efficiency within the National Energy and Water Demand Management Programme to enhance the quality of life and consolidate Dubai's leadership in the fields of sustainability, environmental conservation and future shaping.

 

Empower and ELIPS, a subsidiary of Empower and a leading manufacturer of innovative thermal solutions and insulation pipes, have successfully renewed their ISO certifications for Quality Management System (ISO 9001:2015), Environmental Management System (ISO 14001:2015) and Occupational Health and Safety Management System (ISO 45001:2018). 

 

Adopting best practices

The renewals reflect both companies' commitment to adopting best practices, standards and management systems for quality, environment and occupational health and safety. Empower has also renewed its Information Security Management System (ISO27001:2013) certification, underscoring the measures taken by the company to protect its data, intellectual property, customer information and privacy.

 

Empower also gained the LEED Gold Certification for its Business Bay 5 district cooling plant from the US Green Building Council (USGBC) during the period. The award is the sixth LEED gold received by Empower for its state-of-the-art district cooling plants following Zabeel, Al Barsha Heights, Jumeirah Village Circle and Business Bay 2 and 3 plants.--TradeArabia News Service