Empower records highest revenue in its history, reaching AED 3.035 billion in 2023

Emirates Central Refrigeration Systems Corporation PJSC (DFM: EMPOWER) (ISIN: AEE01134E227), the world’s largest district cooling service provider, announced its financial results for fiscal year 2023, with record revenue of AED 3,035 million, representing significant growth of 8 .7% compared to 2022. The company has recorded a net profit of AED 960 million during the reporting year. In a press release, Authorize It has also proposed a final dividend of AED 425 million for 2023, which will be paid to its shareholders in April 2024.

By 2023, AuthorizeRevenue and EBITDA grew by 8.7% and 6.2% respectively. Pro forma net profit grew 6.1% to AED 1,083 million. This pro forma net profit comparison adjusts for pre-IPO leverage to show comparable performance. In absolute terms, Empower recorded a net profit of AED 960 million by 2023.

Authorize It has also stood out in its operational performance; The number of buildings served by Empower district cooling services reached 1,522 buildings by the end of 2023, an increase of 4% compared to 2022, while the total length of the district cooling pipeline network exceeded 398 kilometers with an increase of 4.7% compared to 2022. .

Dividends

Authorize paid a cash dividend of AED 850 million during the year 2023 in 2 equal installments of AED 425 million each in April and October. The distribution marks the fulfillment of Empower’s commitment to pay dividends to its shareholders twice a year, with a cumulative value of AED 850 million per year for the first two fiscal years following its 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.

Proactive preparation

His Excellency Ahmad bin Shafar, CEO of Empower, saying,

“Empower’s exceptional financial performance reflects the unwavering trust of its shareholders and consumers, solidifying its position as a trusted leader.”

He noted that the company demonstrated impressive adaptability and learning agility in 2023, effectively overcoming challenges and turning them into opportunities for future growth and prosperity.

Bin Shafar Clarified that Authorize’The proactive preparedness strategy in providing district cooling services enabled it to cope with the rapid developments in the real estate sector, which witnessed the completion of several projects and the launch of a wide range of multi-use projects.

“Our professional teams, combined with these resources and our commitment to investing in advanced technologies and modern refrigeration plants throughout Dubai, together represent solid foundations for a unique business model that enables sustained revenue and profit growth, while while offering environmental benefits that contribute to protecting our climate and natural resources.”

Business growth

Authorize has completed several Development Framework Agreements during 2023 with the main real estate developers in Dubai. Of note is the agreement signed with Dubai Maritime City (DMC) to provide refrigeration services to DMC with a total capacity of more than 63,000 tons of refrigeration. Authorize will develop a district cooling infrastructure including two plants and the related distribution network, to serve 43 existing and future buildings in the DMC development.

The district cooling project will be completed in two phases. Authorize had announced the completion of all operations to connect the ‘Anwa’ residential tower in the DMC development, in 2023, to its district cooling service network, with a total cooling capacity of 1,260 tonnes.

Authorize has also signed an agreement with Sobha Properties, one of the leading luxury real estate development companies in the United Arab Emirates, will supply the Sobha Hartland project with environmentally friendly district cooling services for a cooling capacity of up to 17,000 tons. As part of the agreement, Authorize will provide world-class district cooling services to 8 buildings in Sobha Hartland from the Meydan plant and through the expansion of the associated pipeline network.

During 2023, Authorize began providing services at Dubai International Airport, one of the busiest airports in the world. Operating with a total capacity of 110,000 refrigeration tonnes (RT) worth AED 1.1 billion, five district cooling plants and related assets were linked to Empower’s operational, production, distribution and administrative systems as part of the agreement.

In 2023, Authorize It has also completed the qualitative expansion and development of district cooling infrastructure in the Business Bay region, which is home to the world’s largest urban district cooling systems, with a total capacity of 450,000 RT spread across 6 plant halls. district cooling and thermal energy storage (TES) including both existing and future installations.

Key sectors

AuthorizeThe portfolio expanded during 2023, providing district cooling services to a total of 1,522 buildings, in various sectors in the Emirate of Dubai. 64% of the total number of buildings served by Authorize They are residential buildings and 15% are commercial and office buildings. The hotel and hospitality sector represents 14%, Empower serves 21% of Dubai hotels, totaling 821, the healthcare sector represents 3% and the remaining 4% is distributed between education, entertainment, shopping centers and others sectors.

Bin Shafar said the company remains committed to supporting various sectors in Dubai in their carbon reduction efforts, aligning with the Emirate’s vision of a green economy and sustainable development.

District cooling plants

Authorize began the operation of its new district cooling plant at the Dubai Land Residence complex (DLRC), with a production capacity of 47,000 tons of refrigeration, to serve the residents of DLRC, one of Dubai’s prestigious residential destinations.

During the year, Authorize It also started a project to upgrade its Jumeirah Beach Residence (JBR) district cooling plant to equip it with modern and innovative technologies by awarding a contract worth AED 102 million. The JBR plant serves 76 towers, 9,000 residences and 2,000 hotel units, and the modernization project is expected to be completed by 2025.

The company also last year awarded a series of contracts to build a next-generation advanced district cooling plant and expand the district cooling pipeline 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.

In May 2023, Authorize announced the start of construction of reverse osmosis plants at three of its eight district cooling plants in Palm Jumeirah. This initiative is part of the company’s efforts to rationalize freshwater consumption in district cooling operations, aligning with the objectives of Dubai’s Demand Side Management Strategy, which targets a 30% reduction in water consumption by 2030.

Authorize has reaffirmed its commitment to strategic investments aimed at expanding operations in Dubai and improving its operational excellence. This initiative is driven by the company’s dedication to modernizing and developing its infrastructure and technical workforce. The objective is to effectively address the growing demand for the company’s services from individuals, institutions and companies. Notably, Authorize It currently controls a significant share, exceeding 80%, of the district cooling market in Dubai.

Awards

Authorize has won several awards over the past year, notably two gold awards at the IDEA 2023 Annual Conference, held in Chicago, USA, in the ‘Number of Buildings Committed’ and ‘Total Building Area Committed’ categories. The company has won IDEA gold awards for these categories during the years 2016, 2017, 2018, 2019, 2021 and 2022. It has also won more than 16 times multiple awards in different categories during the last few years, in addition to several awards in different global conferences and exhibitions.

In recognition of the company’s sustainable construction practices, AuthorizeThe Za’abeel District Refrigeration Plant received a prestigious Gold certification from the United States Green Building Council (USGBC). This recognition is the result of the Za’abeel facility’s successful compliance with the rigorous Leadership in Energy and Environmental Design (LEED) standards established by the USGBC. The certification serves as a testament to Empower’s pioneering efforts in preserving the environment and reducing its carbon footprint. With this recognition, Empower adds another prestigious award to its history of success and achievements, having previously received a similar rating in the same category.

The Middle East CEO also named His Excellency Ahmad Bin Shafar, CEO of Empower, as CEO of the year 2023 for the energy sector for the third time, during the Middle East CEO Awards ceremony. The title is awarded in recognition of his instrumental role in advancing the district cooling sector in the Middle East region and his strategic direction that brought Empower to a prominent global position, in addition to his tangible contributions and efforts with the the company in the implementation of the country’s objectives. objectives towards sustainable development.

Authorize also hosted the District Cooling Summit 2023, which was organized in collaboration with the International District Energy Association (IDEA) as a side event of the Conference of the Parties (COP 28) of the United Nations Framework Convention on Climate Change in the Green Zone. The summit featured delegates, professionals, experts and decision-makers from around the world and brought together leading experts to discuss the transformative potential of urban cooling to promote sustainable urban development and climate mitigation efforts.

“Empower moves forward with a clear vision and effective expansion strategies that align with the vision of smart leadership for the transition towards sustainability.”

saying Bin Shafar, CEO of Empower.

“Our goal is to contribute more to reducing costs and improving energy efficiency by taking advantage of the advanced technologies we have developed.”

News source: Dubai Press Office