Tabreed’s revenue soars 10% to hit AED1.8b in 9M 2023

ABU DHABI / WAM

Tabreed, the world’s leading district cooling company, reported its financial results for the nine-month period ending on September 30. During the first nine months of the year, Tabreed sustained positive momentum, recording a robust top line of AED1.8 billion, a 10 percent increase year-on-year, compared to AED1.7 billion in the same period last year. Attributed to this success is the steady growth Tabreed achieved in its consumption volumes (9 percent year-on-year) driven by new connections and higher demand from existing customers. During the first nine months of 2023, Tabreed delivered an additional 41,319 Refrigeration Tons (RT) across its portfolio, having commissioned the all-new SeaWorld Abu Dhabi plant in the UAE, two new plants in the Kingdom of Saudi Arabia, and completed an acquisition of a plant from Tata Realty in India, bringing Tabreed’s tally to 89 plants and a total connected capacity to more than 1.3 million RT.
Reflecting its commitment to driving efficiencies across its operations, Tabreed’s gross profit increased by 3 percent year-on-year in the nine-month period to AED804 million, from AED781 in 9M 2022, while Ebitda reached AED914 million (AED912 million in 9M 2022) with healthy Ebitda margin of 50 percent. This is further mirrored in efficient working capital management marked by a 11 percent year-on-year increase in Net Cash from Operating Activities (AED959 million in 9M 2023 versus AED866 million in 9M 2022).
Tabreed’s balance sheet reflected further strength underscored by an improved Net Debt/Ebitda ratio of 4.18x (4.49x as end of FY 2022). Strong cash flow generation and prudent financial management has enabled the company to maintain an ‘Investment Grade’ credit rating with Moody’s Fitch. Driven by revenue growth, healthy Ebitda, and lower net finance costs, the Group reported a Net Profit Before Tax attributable to parent of AED605 million in 9M 2023 compared to AED400 million in 9M 2022. Adjusting for one-off items (including non-cash deferred tax liability of AED359 million recognised in the current period), Normalised Net Profit was AED442 million for the first nine months of 2023, a 14 percent increase compared to AED388 million in 9M 2022. On an absolute basis, Tabreed reported a Net Profit of AED285 million for the nine months ending on September 30. Tabreed’s financial performance for the nine months ended 30 September 2023 was marked by strong growth in revenue, Ebitda, and profit from operations.
Revenue increased by 10% to AED 1.8 billion, EBITDA increased to AED 914 million, and profit from operations increased by 3% to AED 611 million. Net profit before tax attributable to parent was AED 605 million, compared to AED 400 million in the same period of 2022.
Operationally, Tabreed’s total connected capacity exceeded 1.30 million Refrigeration Tons (RT). The company added 41,319 RT of new customer connections, with load additions of 24,165 RT in the UAE, 14,163 RT in KSA, 1,085 RT in Bahrain, 1,000 RT in India, and 906 RT in Oman. Tabreed also achieved a record 19.2 million hours worked without a single lost time incident (LTI), the most recent LTI occurring in July 2015.
Commenting on the results, Khaled Al Qubaisi, Tabreed’s Chairman, said, “I am delighted to report further top-line growth over the period driven by organic customer growth and market expansion. Tabreed continued to capitalise on its regional presence, growing rapidly and strategically across its core markets, domestically in the United Arab Emirates and regionally across GCC and Asia, further cementing our position as the district cooling partner of choice.
“Our new projects and capacity additions throughout the period continue to demonstrate the attractiveness of district cooling in Tabreed’s key markets, with the company on track to add 120,000 RT over 2023-2024. Equally important is Tabreed’s commitment to pursuing growth opportunities and delivering attractive and sustainable long-term returns for shareholders, underpinned by a positive business outlook and resilient business model offering predictable cash flows.”
As well as commencing operations with the bespoke SeaWorld Abu Dhabi plant during the first nine months of 2023, Tabreed was named as preferred bidder for the grant of a long-term District Cooling Concession by the Hyderabad Pharma City master plan in India by Telangana State Industrial Infrastructure Corporation (TSIIC) Limited. Phase 1 of the project will be for the construction of district cooling facilities of 2,500 RT, with an approximate project cost of AED 36.2 million. The total concession capacity of the project will be 125,000 RT, which will be implemented in various phases in accordance with the progress of the master development and corresponding increase in cooling demand.
Additionally in the third quarter of 2023, Saudi Tabreed was awarded a long-term District Cooling Concession for the King Salman Park project. Phase 1 of the King Salman Park project will be for 20,000 RT, with an estimated value of SAR 200 million (circa AED 200 million), with the total capacity rising to 60,000 RT on completion of construction.