Tabreed Reports Robust 2024 Financial Growth
Tabreed's 2024 financial results showcase significant growth in revenue and profits, underscoring its strong market position in the GCC.
Summary
Tabreed reports a 4% revenue increase and a 32% rise in net profit for 2024, driven by growth in consumption volumes and expansion in connected capacity.
National Central Cooling Co., known as Tabreed, has released its financial results for the year 2024, marking another successful year with substantial growth in revenue and profit. The UAE-based district cooling giant reported a revenue of AED 2.434 billion, representing a 4% increase over the previous year, and a net profit before tax of AED 624 million, a notable 32% rise from 2023.
Tabreed's EBITDA also saw a 5% increase, reaching AED 1.252 billion, with an improved margin of 51%. These promising figures were largely driven by a 5% increase in consumption volumes, totaling 2.66 billion refrigeration ton hours (RTH), and an addition of 23,756 Refrigeration Tons (RT) to its connected capacity. This expansion was fueled by new greenfield plants in the UAE and Oman, alongside capacity enhancements in existing plants in India and Egypt.
The company also demonstrated strong cash flow generation, with AED 1.2 billion from operations after working capital changes and AED 970 million in free cash flows. A significant portion of this cash was utilized to optimize the balance sheet by repurchasing USD 207 million of its outstanding sukuk, leading to a 15% saving in net financial costs for 2024. This strategic debt management has improved Tabreed's net debt to EBITDA ratio from 4.1x in 2023 to 3.7x.
The Board of Directors has recommended a dividend payment of 15.5 fils per share, reflecting a commitment to shareholder returns. Over the past five years, Tabreed's dividends have grown at a compounded annual growth rate of 8%, highlighting its financial resilience and positive outlook.
Given the company's strong financial performance, strategic expansion, and commitment to debt reduction, investors might consider holding their positions in Tabreed. The company's proactive strategies in expanding its capacity and optimizing its financial structure suggest that it is well-positioned to capitalize on future growth opportunities in the GCC and beyond.
Source
Summary
Tabreed, a leading district cooling company in the UAE, announced its financial results for 2024, showing increased revenue and profits. Revenue reached AED 2.434 billion, with a net profit before tax of AED 624 million, a 4% rise from 2023. EBITDA grew by 5% to AED 1.252 billion, and net profit after tax increased by 32% to AED 570 million. The growth was driven by a 5% increase in consumption volumes and an expansion in connected capacity, including new plants in the UAE and Oman. Tabreed generated strong cash flows, using surplus to optimize its balance sheet and reduce debt by repurchasing USD 207 million of its sukuk. This debt management saved 15% in net financial costs, improving the net debt to EBITDA ratio to 3.7x. The Board of Directors recommended a dividend of 15.5 fils per share, highlighting a consistent annual growth rate of 8% in dividends over five years. New connections of 23,576 Refrigeration Tons were added across the UAE, Saudi Arabia, Oman, Egypt, and India.
