Empower posts Dhs494m revenues in Q1

Emirates Central Cooling Systems Corporation (Empower), the world’s largest district cooling services provider, which is listed on the Dubai Financial Market (DFM), has reported its first quarter 2023 consolidated financial results, recording quarterly revenue of Dhs494 million and EBITDA of Dhs284 million.

For the last twelve months, Empower’s consolidated revenue was Dhs2.82 billion (Apr22 to Mar23) compared to Dhs2.53 billion (Apr21 to Mar22), showing an impressive growth of 11.5 per cent. The EBITDA for the similar periods was Dhs1.40 billion (Apr22 to Mar23) compared to Dhs1.26 billion (Apr21 to Mar22), with a growth of 11.1 per cent. The company’s first quarter 2023 revenue and EBITDA grew by 6.0 per cent and 8.2 per cent respectively. For the same period, Empower’s pro forma Net Profit grew by 5.7 per cent to Dhs191.6 million. This pro forma Net Profit comparison adjusts for pre IPO leverage to show comparable quarterly performance. On an absolute net profit basis, Empower reported a net profit of Dhs167.4 million.

The company’s exceptional growth during the first quarter of 2023 is attributed to a significant rise in demand for its services across various regions of Dubai, particularly from newly added mixed-use projects to Empower’s portfolio, and a noteworthy surge in production and operational capacity during the first quarter of this year. The growth of 2023 is primarily fueled by the rise in recurring and sustainable revenues resulting from the boom in various economic sectors and markets in Dubai, notably the real estate sector, which is the mainstay of the company’s business.

During the first quarter of 2023, Empower entered into several exclusivity agreements including concessions agreements with major real estate development projects. In February 2023, the company signed an agreement with the Dubai Maritime City (DMC) to provide its projects district cooling services with a capacity exceeding 63,000 refrigeration tonnes (RT), and in March 2023, Empower signed an agreement with Sobha Real Estate to provide 17,000 RT district cooling services for the Sobha Hartland project.