Tabreed, the leading district cooling company in the UAE, reported a net profit before tax of Dh122 million for the first quarter of 2024, showing a four per cent increase compared to the same period last year. The growth was driven by a nine per cent increase in consumption volume due to new connections and organic growth. The company’s Ebitda margin was 58 per cent, an improvement from the previous year, with a topline group revenue of Dh468 million.
Tabreed achieved a cash conversion rate of 90 per cent, showcasing its solid financial management and profit generation capability. The net debt to Ebitda ratio stood at 3.97x, and the company successfully repurchased a part of its outstanding $500 million sukuk to optimize its cost of funding and strengthen its balance sheet. The total connected capacity reached 1.305 million refrigeration tonnes, with 1,710 RT of new customer connections added, mostly in the UAE.
Khaled Abdulla Al Qubaisi, Tabreed’s chairman, emphasized the company’s strategic initiatives in ensuring continued positive momentum in the medium term. He expressed confidence in leading the way in sustainable cooling, creating value for shareholders, and contributing positively to the communities, businesses, and industries served. The company’s commitment to growth and sustainability is evident in its financial performance and operational achievements.
In conclusion, Tabreed’s financial results for the first quarter of 2024 demonstrate its resilience and potential for growth in the district cooling sector. With a focus on financial management, strategic initiatives, and sustainable practices, the company is well-positioned to maintain its competitive edge and drive value for its stakeholders. As the industry leader in the UAE, Tabreed continues to set the standard for efficient and environmentally friendly cooling solutions, contributing to the overall sustainability and development of the region.
