Tabreed registers Dhs291m net profit

Tabreed, the UAE’s leading international district cooling company, has released its consolidated financial results for the first six months of 2024 and announced changes to its Board of Directors.

The results demonstrate exceptional financial health driven by business growth, sustained profitability margins and a commitment to sound financial discipline.

Tabreed experienced an 8% year-on-year surge in consumption volumes, reflecting rising cooling demand during the summer and continued strategic expansion over the past 12 months.

As a result of strong operating performance, the company delivered a normalised net profit before tax of Dhs291 million - an increase of 4% compared to the same period last year.

H1 2024 also saw Tabreed’s earnings before interest, taxes, depreciation and amortisation (EBITDA) increase to Dhs603 million, which compares favourably to the Dhs590 million reported for H1 2023.

Topline group revenue increased to Dhs1.08 billion for H1 2024, compared to Dhs1.067 billion during the first half of 2023.

Tabreed’s H1 2024 EBITDA margin increased year-over-year to 56%, demonstrating the company’s ability to generate strong financial results while expanding its business. The company generated impressive free cash flows of Dhs978 million over the past 12 months, translating to a healthy yield of more than 10%.

Demonstrating responsible management and prudent use of surplus cash, Tabreed further reduced its debt by 12% in the first half of the year by repurchasing an additional $207 million (Dhs759 million) of its outstanding sukuk due in 2025.