Tabreed posts 9% year-on-year growth in 2023 revenue

StoolThe UAE’s leading international district cooling company, today published its consolidated financial results for the year 2023, reporting revenue of AED 2.4 billion (an increase of 9 percent from 2022) and net profit attributable to the parent company. , before deferred taxes, of AED 751. million.

Stool”s balance sheet strengthened further, underlined by an improvement in the net debt/EBITDA ratio of 4.11x (4.49x at the end of fiscal 2022).

StoolNet debt decreased in 2023 thanks to strong cash generation and a decrease in gross debt due to a proactive debt management exercise carried out during the year. As a result of prudent financial management, the company achieved reductions in its net financing costs by 24 percent, despite a high interest rate environment.

Throughout the year, Stool continued to maintain its strong cash flow profile, supported by long-term contracts, resilient margins and efficient working capital management.

Net cash from operating activities amounted to AED 1.31 billion in 2023 (AED 1.35 billion in 2022), while free cash flows increased 8 percent to AED 1.21 billion , driven by strong operating income, continued investments in growth and rationalization of the existing asset portfolio.

StoolThe company’s board of directors, in recognition of the company’s strong financial performance throughout the year, its strong cash generation and its positive prospects, recommended a record dividend payment of 15.5 fils per share in cash. This represents a 15 percent increase over 2022 and reinforces Tabreed’s commitment to maximizing value for its shareholders.

During 2023, with the enactment of the UAE corporate tax law, there was a one-time, non-cash accounting impact due to the recognition of a deferred tax liability of AED 359 million, resulting in a reported net profit of AED 431 million for the year. .

Stool added 53,000 refrigeration tonnes (RT) of new connections in 2023, across its portfolio in the UAE and internationally. The expansion was largely driven by organic growth, through new connections in existing concession areas, as well as new “greenfield” plants. Tabreed continued to strengthen its presence in its core markets of the UAE and GCC, adding 31,000 RTs in the UAE, 14,000 RTs in Saudi Arabia, 3,000 RTs in Bahrain and 1,000 RTs in Oman.

Stool entered the Indian market during 2023, in a strategic alliance with TATA Realty and Infrastructure Limited, demonstrating its commitment to diversify and expand beyond the geographical boundaries of the GCC. While increasing its presence in international markets, the company remained focused on optimizing its existing portfolio to improve profitability. Stool’The total connected capacity will increase in 2023 to reach 1,303 million RT.

Stool enjoyed a remarkable 2023 on many levels, being the company’s 25th anniversary year. Tabreed, more publicly engaged than ever, spoke at the second World Utilities Congress and was announced as an exclusive ‘Cooling Partner’. During COP28 in December, the company participated as an exhibitor in the Mubadala pavilion and C-Suite executives actively participated in high-level debates and panel discussions in both the Green Zone and the Blue Zone, particularly as strategic partners of the United Nations Environment Program (UNEP). and Cool Coalition. As COP28 came to a close, Tabreed signed an AED 600 million green revolving credit facility under its green financing framework, to help meet future expansion requirements with speed and agility.

Fittingly, with 2023 being the UAE’s “Year of Sustainability”, Stool became signatories to the UAE Responsible Business Commitment, the Abu Dhabi Sustainable Finance Declaration and the Global Cooling Commitment, each of which is a clear commitment to help the UAE and other nations achieve their individual goals of Net-Zero through energy-efficient operations. Sustainability was also intrinsically linked to Tabreed with its new geothermal district cooling plant, developed in partnership with ADNOC in Masdar City, which uses renewable energy from deep underground to produce chilled water for use in a pre-existing network.

On 1 May 2023, two senior appointments were made to Tabreed’s executive management team: Nadia Bardawil took on the role of Chief Legal Counsel and Philippe Coquelle joined as Chief Development Officer.

Following the release of full 2023 results, Khaled Abdulla Al Qubaisi, Chairman of Tabreedsaying,

“Over the coming years, we will continue to capitalize on Tabreed’s unparalleled history and world-leading expertise by aggressively but thoughtfully focusing on expansion opportunities. “Opportunities that will provide healthy returns for our investors while also benefiting the countries and communities in which we operate.”

News source: Emirates News Agency