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Tabreed net profit rises 4% for Dh122 million in first quarter

Consumption volumes for firm’s cooling services growing organically by 9%

Tabreed, the UAE’s leading international district cooling company, on Wednesday reported a net profit before tax of Dh122 million for the first three months of 2024. This was an increase of four per cent compared to Dh117 million (adjusted for one-off gains and losses) reported during the same period last year.

Consumption volume increased nine per cent year-on-year, driven by new connections attributing to organic growth recorded during the past year.

During Q1 2024, Tabreed’s topline and earnings before interest, taxes, depreciation and amortisation (Ebitda) continued to climb, with a healthy rate compared to Q1 2023. Reaffirming the company’s solid financial management and profit generation capability, Tabreed’s Ebitda margin was 58 per cent, compared to 57 per cent in the first quarter of 2023, with topline group revenue of Dh468m for the first quarter of 2024.

Tabreed’s achieved a cash conversion rate of 90 per cent.

Tabreed’s net debt to Ebitda ratio stood at 3.97x as at the end of the first quarter of 2024. Following the first quarter, Tabreed successfully concluded a tender offer for the repurchase of a part of its outstanding $500 million sukuk due in 2025. Including sukuk purchased prior to the tender offer, Tabreed has now repurchased a total of $240 million of its outstanding sukuk due in 2025. The buyback is part of Tabreed’s active management of its debt profile to optimise its cost of funding and further strengthen its balance sheet.

Group revenue increased to Dh468 million.Total connected capacity reached 1.305 million refrigeration tonnes. A total of 1,710 RT of new customer connections were added, mostly in the UAE.

Khaled Abdulla Al Qubaisi, Tabreed’s chairman, said: “Our strategic initiatives, both locally and internationally, are geared towards ensuring we maintain our positive momentum in the medium term. We are confident in our ability to continue leading the way in sustainable cooling, creating value for our shareholders and positively contributing to the communities, businesses and industries we serve.”