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Abu Dhabi-headquartered Tabreed’s net income rises 16.5% in 2020 to Dhs550m

Tabreed currently delivers over 1.404 million refrigeration tonnes to key developments across the UAE and Saudi Arabia

by Gulf Business

February 16, 2021

The National Central Cooling Company (Tabreed) has reported that its net income for 2020 increased 16.5 per cent to Dhs550m.

Group revenue increased by 14.5 per cent to Dhs1.741bn (2019: Dhs1.52bn), while EBITDA rose by 27 per cent to Dhs970m (2019: Dhs763m).

By the end of calendar year 2020, it had added 39.6k refrigeration tonnes (RT) of organic capacity growth and 181.5k RT of inorganic capacity additions, resulting in the delivery of 1,403,819 RT of cooling capacity.

Tabreed currently delivers over 1.404 million RT to key developments, including the Burj Khalifa, Dubai Opera, The Dubai Mall, Sheikh Zayed Grand Mosque, Al Maryah Island, Yas Island, Dubai Metro, the Bahrain Financial Harbour and the Jabal Omar Development in Makkah.

Tabreed’s board of directors have recommended a return of value to shareholders for 2020 through the combination of a cash dividend of 5.75 fils per share plus a bonus share issue of 1 share for every 45 shares held.

This equates at current share price to roughly 11.5 fils/share and represents a 10 per cent increase over the 2019 dividend.

In 2020, Tabreed acquired the world’s largest district cooling scheme in Downtown Dubai with a total capacity of 235,000RT and two concessions with a total capacity of 88,000RT in Saadiyat Island.

Read: UAE’s Tabreed acquires 80% stake in Emaar’s district cooling business

In October, it raised $500m through a seven-year, 2.5 percent coupon bond issuance that was oversubscribed at almost five times its initial size.

Read: UAE’s Tabreed issues new $500m 7-year bond

“Tabreed has become an international powerhouse in district cooling, with 86 plants and investments in six countries,” said Khaled Abdulla Al Qubaisi, Tabreed’s chairman. “I am confident about our ability to continue to deliver even stronger performance, whilst also contributing to the region’s sustainable development.”

In October, Tabreed received approval from shareholders to raise $1bn through the issuance of bonds or sukuk.