Tabreed proposes first-ever interim dividend

ABU DHABI, UAE, 8 August 2025: National Central Cooling Company (TABREED) announced the results for the six-month period ended June 30, 2025, reporting revenues of AED 1.11 billion and a net profit of AED 276 million. Making the announcement through a Press Release, Tabreed said the results reflect strategic momentum across its platform, with improved margins, cost discipline and sustained demand, laying the foundation for continued growth.

Tabreed said Group revenue rose to AED 1.11 billion in H1 2025, marking a three per cent year-on-year increase driven by higher cooling demand and significant capacity additions across key markets. Consumption volumes grew three per cent, year-on-year, in H1 2025 and accelerated to eight per cent, year-on-year, in Q2 2025, reflecting both seasonal uplift and growing utilisation across its network, the District Cooling utility company said. Net profit for the first half rose to AED 276 million, a 2.5% increase, compared to the first half of 2024, the company said, adding that the uplift reflects continued scale benefits and disciplined cost control, alongside margin expansion, as EBITDA rose five per cent to AED 632 million, with margins improving to 57%.

Tabreed said that reflecting the strong financial position and continued cash generation, its Board of Directors proposed an interim dividend of 6.5 fils per share for the first half of 2025, or 67% payout based on H1 2025 net profit. This, Tabreed said, marks the first interim dividend in its history and reflects the Board’s confidence in the company’s performance, outlook and ability to deliver sustainable long-term value. The payment of dividend remains subject to shareholders’ approval at the General Assembly Meeting, expected to be convened in September 2025, Tabreed added.

According to Tabreed, total connected capacity reached 1.37 million Refrigeration Tons (RT), with 41.6k RT of record high organic capacity added during the period, nearly double the full-year total in 2024. This growth, the company said, was led by 18k RT of new connections in the UAE and 23.6k RT across regional markets, reinforcing its position as a cross-regional operator.

Following a period of strong operational growth, Tabreed advanced its strategic agenda in June with the announcement that, in a 50:50 joint venture with CVC DIF, the company is to acquire PAL Cooling Holding from Multiply Group. The deal, which remains subject to customary regulatory approvals, is set to add more than 182k RT, increase pro forma connected capacity to 1.55 million RT (+13%) and includes eight concessions with total planned capacity of up to 600k RT. The deal, Tabreed said, would also expand its long-term concession base and customer network, including a new relationship with Modon, and contribute to a secured future capacity pipeline of more than one million RT, equivalent to 80% of current connected capacity.

Complementing the landmark development, Tabreed said, its portfolio continued to grow, with the commissioning of three new greenfield plants during the first half – in local and regional markets, with a combined capacity of 28.6k RT. Developed to meet rising demand in fast-growing urban and industrial hubs, the new facilities, the company said, reinforce its ability to scale operationally while deepening its presence in core and international markets.

Tabreed said progress also continued on its largest-ever greenfield project at Palm Jebel Ali, a 250k RT exclusive concession secured in partnership with Dubai Holding Investments. Together, the PAL Cooling acquisition and Palm Jebel Ali concession represent the two biggest strategic deals in its history, expanding the total site capacity to approximately 2.6 million RT and reinforcing its platform for long-term, capital-efficient growth and cash flow visibility, Tabreed said. With a strong pipeline, long-term concessions and expanding geographical reach, Tabreed said, it remains well positioned to deliver sustained growth through the remainder of 2025 and beyond.

Commenting on the results, Dr Bakheet Al Katheeri, Chairman, Tabreed, said: “Tabreed continues to demonstrate the strength and scalability of its platform, delivering solid financial results while advancing its long-term growth agenda. The record capacity additions in H1 2025, following landmark transactions, including the Palm Jebel Ali development and strategic acquisition of PAL Cooling, reinforce our position as a cross-regional operator and infrastructure partner with a clear mandate for value creation. As a Board, we remain focused on capital discipline and sustainable returns, and this balance between growth and value creation is reflected in our decision to propose Tabreed’s first-ever interim dividend.”

Tabreed said it also made significant progress on its refinancing during the first half, strengthening its balance sheet and enhancing financial flexibility. In Q1, the company said, it issued a USD 700 million Green Sukuk under its Green Finance Framework, successfully refinancing near-term maturities at a competitive profit rate and improving its liquidity profile. Tabreed said it has a robust financial position, underscored by investment-grade credit ratings from both Moody’s and Fitch. Free cash flows, the company said, reached AED 973 million over the past 12 months, translating to a 11.5% yield, supported by strong collections, margin stability and disciplined capital allocation. As a result, the company said, net debt to EBITDA improved to 3.7x, down from 4.2x a year earlier.

Commenting on the company’s performance, Khalid Al Marzooqi, Tabreed’s Chief Executive Officer, said: “The signing of the PAL Cooling acquisition represents a defining milestone, not just for Tabreed’s footprint in Abu Dhabi, but for our long-term evolution as a critical infrastructure partner to cities, industries and digital ecosystems across the region. Tabreed today is more than a utility, we’re building a high-performing, future-ready platform that delivers recurring value, with sustainability, efficiency and scale at its core. With visibility over a planned total capacity of approximately 2.6 million RT, we’re focused on capital efficiency, operational excellence and preparing the business to lead in new markets and sectors where District Cooling plays an essential role.”