Empower posts revenue of AED 2.27 billion for the nine-month period

Emirates Central Refrigeration Systems Corporation PJSC (Symbol: EMPOWER) (ISIN: AEE01134E227), the world’s largest district cooling service provider, today announced its consolidated financial results for the third quarter of the current fiscal year, with EBITDA of AED 1.07 billion and revenue totals of AED 2.27 billion for a nine-month period ending September 30, 2023.

Exceptional growth driven by fundamentals

During the last twelve months, AuthorizeConsolidated AED revenue was AED 2.99 billion (October 22 to September 23) compared to AED 2.73 billion (October 21 to September 22), showing a impressive growth of 9.5%. EBITDA for the period was AED 1.45 billion (October 22 to September 23) compared to AED 1.32 billion (October 21 to September 22), with a growth of 9 ,5%.

For a period of nine months ending September 30, 2023, AuthorizeRevenue and EBITDA grew by 9.5% and 7.5% respectively. Over the same period, Empower’s pro forma net profit grew 6.1% to AED 777 million. This pro forma net profit comparison adjusts for pre-IPO leverage to show comparable quarterly performance. In absolute terms, Empower reported a net profit of AED 685 million for the nine-month period ending September 2023.

Authorize paid a cash dividend of AED 425 million for the first half of the current year 2023 in October 2023. This distribution marks the fulfillment of Empower’s commitment to pay dividends to its shareholders twice a year, with a cumulative value of 850 million of AED per year for the first two fiscal years after listing on the Dubai Financial Market.

Following committed dividend distributions for the first two fiscal years post-IPO, the company expects to pay a sustainable dividend in line with business growth.

This notable performance during the third quarter was primarily driven by the steady increase in demand for the company’s services, which is attributed to the positive performance of the real estate sector, the prime locations of Empower’s projects, and its continued efforts to expand services. from district cooling to new projects.

Creating investment opportunities

HE Ahmad bin Shafar, CEO of Empower, saying:

“Empower continues to expand its operations, invest in its asset portfolio and develop its infrastructure to meet the growing demand in Dubai’s district cooling market.” He explained that the third quarter 2023 results promise shareholders long-term sustainable profits and reflect Empower’s commitment to maintaining strong, profitable and sustainable operational and financial performance. This will benefit Empower shareholders, Dubai’s economy, its residents and its business sectors, regardless of their industry or diversity.

Bin Shafar highlighted that capital markets and shareholders, as well as customers, are touching AuthorizeEmpower’s progress on more than one level, including consolidating its leadership position in district cooling markets globally and meeting demand for district cooling services to the highest standards that surpass its peers in Dubai, where Empower owns more than 80% of its district cooling market.

Outstanding Achievements in the Third Quarter of 2023

During the third quarter of 2023, Authorize achieved important milestones in its operations and activities. Notably, the company completed the acquisition of Dubai Airport’s district cooling assets and began providing services at the prestigious Dubai International Airport from July 5, 2023. The company also awarded a number of contracts to build a next-generation advanced district cooling plant and expand the district. Cooling pipe network in the Jumeirah Beach Hills area.

This expansion project will provide a total refrigeration capacity of 48,000 refrigeration tons (RT) and will serve prestigious residential and tourism destinations in the emirate, including iconic locations such as Burj Al Arab, Jumeirah Beach Hotel, Marsa Al-Arab, Madinat Jumeirah Living, Madinat Jumeirah. , Jumeirah Al-Naseem Hotel and many more architectural icons in Dubai.

Authorize It also added nearly a dozen new buildings to its portfolio during the quarter, of which 70% are residential buildings, 20% commercial and 10% mixed-use buildings. Iconic projects in Dubai such as Sobha Real Estate’s ‘S’ Tower, one of the luxurious residential projects located on Sheikh Zayed Road, the final phase of Zabeel One, which is considered a distinguished architectural and engineering marvel in the world. and other large projects were connected to the Empower network during this period.

The company signed almost 25 new agreements with building owners during the period to provide them with environmentally friendly district cooling services, resulting in an addition of approximately 26,000 RT to the company’s contracted capacity from the existing portfolio of framework agreements. of concession. The third quarter also witnessed a 22% increase in electronic registrations to avail the company’s services compared to the same period in 2022, as 6,911 new requests were received from end users, indicating a growing demand for Empower’s district cooling services.

In recognition of Empower’s commitment to building environmentally friendly plants, its Za’abeel plant received a Gold Certification from the U.S. Green Building Council (USGBC). This certification, awarded for the second time to the company, signifies Empower’s commitment to meeting the Council’s Leadership in Energy and Environmental Design (LEED) standards. It serves as a testament to Empower’s pioneering efforts to conserve the environment and reduce its carbon footprint.

Powerful catalysts for growth

Authorize highlighted that the notable increase in demand for its services, the adoption of a sustainable business model and the expansion of its services to several projects in Dubai served as a powerful catalyst for the success of its business, generating significant revenue growth. and profits. The company aims to improve its productive and operational capacity to meet the growing demand for its services.

News source: Dubai Press Office