ABU DHABI, UAE, 14 February 2024: Tabreed announced its consolidated financial results for the year 2023, reporting a revenue of AED 2.4 billion – a nine per cent increase over 2022 – and a net profit attributable to parent before deferred tax, of AED 751 million. Making the announcement through a Press release, Tabreed said that its balance sheet strengthened further, underscored by an improved net debt/EBITDA ratio of 4.11x (4.49x as of the end of FY 2022). Furthermore, Tabreed said its net debt decreased in 2023, thanks to strong cash generation and a decline in gross debt due to a proactive debt management exercise carried out during the year. Tabreed also said that due to prudent financial management, the company achieved reductions in its net finance costs by 24%, despite a high-interest rate environment. 

Throughout the year, Tabreed said, it continued to maintain its strong cash flow profile, underpinned by long-term contracts, resilient margins and efficient working capital management. Net cash from operating activities, Tabreed said, totalled AED 1.31 billion in 2023 (AED 1.35 billion in 2022), while free cash flows increased by eight per cent to AED 1.21 billion, driven by strong operating income, continued investment in growth and streamlining of existing asset portfolio. 

Tabreed said its Board of Directors, in recognition of the company’s strong financial performance throughout the year, robust cash generation and positive outlook, has recommended a record high dividend payment of 15.5 fils per share in cash. Tabreed said that it represents an increase of 15% over 2022 and reinforces the commitment to maximising value for its shareholders. 

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

Tabreed said it accomplished 53,000 Refrigeration Tons (RT) of new connections in 2023 across its portfolio in the UAE and internationally. Tabreed said the expansion was mainly driven by organic growth, new connections in existing concession areas, and ‘greenfield’ plants. Furthermore, Tabreed said it continued to strengthen its presence in its core markets of the UAE and GCC region, with the addition of 31,000 RT in the UAE, 14,000 RT in Saudi Arabia, 3,000 RT in Bahrain and 1,000 RT in Oman. 

Tabreed said it entered the Indian market in 2023 in a strategic alliance with TATA Realty and Infrastructure Limited, demonstrating its commitment to diversify and expand beyond the GCC region’s geographical borders. While growing its presence in international markets, Tabreed said it remained focused on optimising its existing portfolio to enhance returns and increasing total connected capacity in 2023 to reach 1.303 million RT.

Tabreed said it also enjoyed a remarkable 2023 on many levels, being the year of the company’s 25th Anniversary, and added that it exhibited at the second World Utilities Congress and was billed as an exclusive ‘Cooling Partner’. During COP28 in December, Tabreed said it took part as an exhibitor on Mubadala’s pavilion and C-Suite executives were active in high-level debates and panel discussions in both Green and Blue Zones, particularly as strategic partners of the United Nations Environment Programme (UNEP) and Cool Coalition. As COP28 drew to a close, Tabreed said it signed an AED 600 million Green Revolving Credit Facility under its green financing framework to help meet future expansion requirements with speed and agility. 

Tabreed said that with 2023 being the UAE’s ‘Year of Sustainability’,  it became signatories to the UAE’s Responsible Companies Pledge, the Abu Dhabi Sustainable Finance Declaration and the Global Cooling Pledge – each a clear commitment to assisting the UAE and other nations in reaching their individual Net-Zero targets through energy-efficient operations. Sustainability, Tabreed said, also became intrinsically linked to the District Cooling utility provider with its brand-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. Furthermore, Tabreed said two senior appointments were made to its Executive Management Team on 1 May 2023, with Nadia Bardawil assuming the role of Chief Legal Counsel and Philippe Coquelle joining as Chief Development Officer. 

Tabreed said the financial highlights of 2023, which ended on December 31, are as follows:

· Group revenue increased by nine per cent to AED 2.4 billion (2022: AED 2.2 billion) 

· EBITDA at AED 1.2 billion remained resilient with a healthy margin of 50% (2022: AED 1.2 billion) 

· Net profit before tax attributable to parent increased by 25% to AED 751.4 million (2022: AED 600.2 million)

Tabreed said the operational highlights of 2023, which ended on December 31, are as follows:

· Total connected capacity increased to 1.303 million RT 

· 53k RT of new customer connections added 

· Consumption volumes increased by eight per cent year-on-year 

Tabreed said the environmental highlights of 2023, which ended on December 31, are as follows:

· 2.52 billion kilowatt hours saved across the GCC region – enough to power more than 143,000 homes every year 

· Prevented the release of 1.5 million metric tons of CO2 into the atmosphere, which is equivalent to the removal of approximately 330,000 vehicles from the roads, annually 

· Constructed and commissioned Middle East’s first renewable energy (geothermal) district cooling plant in partnership with ADNOC at Masdar City, Abu Dhabi 

Khaled Abdulla Al Qubaisi, Chairman, Tabreed, said: “This time last year I spoke about Tabreed’s carefully planned growth and taking our globally renowned expertise into new markets. We spent 2023 making good on that promise and now operate in six countries, including India, supplying sustainable cooling to our prestigious clients. This is just the beginning, and over the next few years, we will continue to capitalise on Tabreed’s unrivalled history and world-leading experience by aggressively, yet considerately, targeting opportunities for expansion. These opportunities will provide healthy returns for our investors while benefiting the countries and communities in which we operate. International demand for our services is growing considerably, and these results prove we are ready, willing and able to respond like no other company.”