Tabreed Announces AED 441 Million Dividend Payout
Tabreed, a leading district cooling company, announces a significant dividend payout following a strong financial year.
Summary
Tabreed's AGA approves AED 441 million dividend for FY 2024, highlights strong financial performance and strategic growth initiatives.
In a significant move that underscores its financial robustness and commitment to shareholder value, National Central Cooling Co., popularly known as Tabreed, has announced a substantial dividend payout of AED 441 million for the fiscal year 2024. This announcement was made during the company's Annual General Assembly (AGA), reflecting its impressive operational and financial performance over the past year.
Tabreed, headquartered in Abu Dhabi, UAE, has consistently demonstrated its prowess in the district cooling sector, with a remarkable 32% increase in net profit after tax for 2024. The approved dividend translates to 15.5 fils per share, a testament to the company's dedication to rewarding its investors.
The AGA was presided over by Dr. Bakheet Al Katheeri, Tabreed's Chairman, who emphasized the company's strategic investments and prudent business development approaches as key drivers of its success. Over the past five years, Tabreed has delivered a total shareholder return of 96%, combining share price appreciation and dividends.
2024 was a landmark year for Tabreed, marked by record revenues and significant expansion across its operational footprint. The company successfully completed two new plants and added 23,576 Refrigeration Tons (RTs) in new connections across the UAE, Saudi Arabia, Oman, Egypt, and India. This expansion is complemented by a 5% increase in consumption volumes, reaching 2.66 billion refrigeration ton hours (RTH).
As Tabreed steps into 2025, it does so with substantial momentum. The company has already raised $700 million through its inaugural green sukuk, a move that aligns with its commitment to sustainability. Furthermore, a new joint venture with Dubai Holding to supply district cooling to Palm Jebel Ali signifies Tabreed's strategic foresight and capacity for innovation.
Despite the impressive financial metrics and strategic initiatives, investors may want to adopt a cautious approach. While the company shows strong fundamentals, the broader economic environment and market conditions should be considered. Hence, a 'hold' recommendation might be prudent for existing shareholders, ensuring they benefit from future growth while remaining vigilant of market dynamics.
Source
Summary
Tabreed held its Annual General Assembly where shareholders approved a cash dividend payout of AED 441 million for the fiscal year 2024, reflecting strong financial performance. The company reported record revenues and a 32% increase in net profit for 2024, achieving a total shareholder return of 96% over the past five years. The assembly confirmed new board members, Mansoor Al Hamed and Janis Rey Lozada. Chairman Dr. Bakheet Al Katheeri highlighted the company's consistent performance and strategic investments, noting its resilience and promising future opportunities. In 2025, Tabreed has already raised $700 million through a green sukuk and entered a joint venture with Dubai Holding. The company expanded its operations in 2024 by completing two new plants and increasing connections across several countries, with a 5% growth in consumption volumes.
