Tabreed achieves strong growth in first half of the year, revenue reaches 4 million

Tabreed, a leading district cooling company, has reported robust growth in the first half of the year, with revenue hitting 4 million. The company’s group revenue for H1 rose to AED1.08 billion from AED1.06 billion last year, driven by business growth, sustained profitability margins, and a commitment to financial discipline.

In its consolidated financial results for the six-month period ended June 30, 2024, Tabreed announced that its earnings before interest, taxes, depreciation, and amortization (EBITDA) increased to AED603 million, compared to AED590 million reported for H1 of the previous year. This growth in EBITDA demonstrates the company’s strong financial performance and ability to expand its business while generating positive results.

Tabreed’s H1 EBITDA margin increased year-over-year to 56%, showcasing the company’s capacity to deliver strong financial results. The results indicate a healthy financial position driven by business growth, sustained profitability margins, and a commitment to sound financial management.

The company experienced an 8% year-on-year surge in consumption volumes, attributed to rising cooling demand during the summer and strategic expansion efforts over the past year. This strong operating performance led to a normalized net profit before tax of AED291 million, marking a 4% increase from the previous year.

Tabreed also generated impressive free cash flows of AED978 million over the past 12 months, resulting in a healthy yield of over 10%. The company demonstrated responsible management by reducing its debt by 12% in the first half of the year through the repurchase of 7 million of its outstanding sukuk due in 2025.

In a significant development, Tabreed announced changes to its board of directors, with Dr. Bakheet Al Katheeri taking over as the new Chairman, succeeding Khaled Al Qubaisi. Al Katheeri expressed confidence in the company’s financial performance, emphasizing the increased consumption volumes driving higher profits and improved EBITDA in the first half of the year.

Al Katheeri highlighted the company’s focus on prudent capital allocation, strengthening its financial position for growth and expansion in key infrastructure projects and decarbonization efforts in the UAE and the broader region. He expressed his honor in taking on the role of Chairman and working with the executive leadership team to drive the company forward.

Under Al Qubaisi’s leadership, Tabreed positioned itself as an agile and efficient company with a resilient business model and a commitment to sustainable value creation. The company’s solid performance and strategic initiatives demonstrate its dedication to partnerships and sustainable growth for investors, partners, and stakeholders.

Overall, Tabreed’s strong financial results and prudent financial management reflect its dedication to delivering value and driving growth in the district cooling industry. The company’s commitment to financial discipline, business growth, and strategic expansion have contributed to its success in the first half of the year, setting a positive trajectory for continued growth and development in the future.