Empower Achieves Impressive 10.3% Revenue Growth in H1 2024
Emirates Central Cooling Systems Corporation PJSC (Empower) has reported a remarkable financial performance for the first half of 2024, showcasing significant growth in revenue and profitability.
Summary
Empower, the world's largest district cooling services provider, has announced a 10.3% increase in revenue for H1 2024, reaching AED 1,352 million. The company attributes its success to the rising adoption of sustainable practices and increasing occupancy rates in Dubai's real estate sector.
Dubai, United Arab Emirates, 6 August 2024 – Emirates Central Cooling Systems Corporation PJSC (Empower) (DFM: EMPOWER) (ISIN: AEE01134E227), the world's largest provider of district cooling services, has unveiled its financial results for the first half of 2024. The company reported total revenues of AED 1,352 million, marking a 10.3% increase compared to the same period in 2023. Additionally, Empower achieved an EBITDA of AED 693 million, reflecting a 6.0% year-over-year growth.
Empower's CEO, HE Ahmad Bin Shafar, emphasized that the company's robust financial performance is a testament to its strategic initiatives and the growing demand for its services. He noted that the company's sustainable financial revenues are primarily driven by two key factors. First, there is an increasing trend among real estate developers and building owners to adopt environmentally friendly practices. These stakeholders are seeking cooling systems that not only protect natural resources but also reduce emissions, optimize energy consumption, and lower costs.
Secondly, the rising occupancy rates in Dubai's real estate projects, particularly in the residential segment, have significantly contributed to Empower's growth. The continuous addition of new projects to the company's portfolio has further diversified its customer base, which now includes sectors such as residential, commercial, healthcare, hospitality, retail, education, and entertainment.
For Q2 2024 alone, Empower reported revenues of AED 814 million, a substantial rise from AED 731 million in Q2 2023. The company's profit before tax for the first half of 2024 amounted to AED 428 million, showcasing an impressive 6.3% growth compared to the same period last year. Net profit after tax stood at AED 390 million for the six months ended 30 June 2024.
Empower's strategic focus on sustainability and expanding its portfolio of real estate projects has positioned it as a key player in Dubai's economic expansion. The company's commitment to delivering enhanced returns to shareholders while contributing to environmental sustainability underscores its long-term growth potential.
Given the company's strong financial performance, strategic initiatives, and the positive outlook for Dubai's real estate sector, investors may find Empower to be a compelling investment opportunity. The company's focus on sustainable practices and its expanding customer base across various sectors provide a solid foundation for continued growth.
Recommendation: Based on the current financial performance and future growth prospects, investors are advised to buy Empower's stock.
Source
Summary
Emirates Central Cooling Systems Corporation PJSC (EMPOWER) reported AED 1,352 million in revenue for the first half of 2024, a 10.3% increase compared to H1 2023. The company's EBITDA for the same period was AED 693 million, reflecting a 6.0% growth. Profit before tax reached AED 428 million, up 6.3% from the previous year, with a net profit after tax of AED 390 million for the six months ending June 30, 2024. CEO Ahmad Bin Shafar attributed the robust financial performance to the rising adoption of environmentally friendly cooling systems by real estate developers and building owners. Additionally, increasing occupancy rates in Dubai's real estate projects and the expansion of Empower’s portfolio with new projects have driven demand for the company's services. Empower’s diverse customer base spans residential, commercial, healthcare, hospitality, retail, education, entertainment, and other sectors.
