National Central Cooling Company, also known as Tabreed, reported a 16.5 per cent increase in full-year net income on the back of organic and inorganic capacity additions to its business.
Net profit attributable to equity holders of the parent for the period ending December 31, 2020 grew to Dh550 million ($149.7m), the company said in a disclosure to the Dubai Financial Market, where its shares trade.
Group revenue for 2020 increased by14.5 per cent to reach Dh1,741m, while earnings before interest, tax, depreciation and amortisation (Ebitda) surged 27 per cent to Dh970m.
"Our financial and operational achievements this past year allowed us to achieve impressive results despite a challenging operating environment, solidifying Tabreed’s growth story and its reputation for leading edge innovation within the district cooling sector," Tabreed chairman Khaled Al Qubaisi said.
Tabreed's board recommended a 10 per cent increase in dividend, compared with the previous year, following growth in revenue and profit.
The company's shareholders will receive a cash dividend of 5.75 fils per share in addition to a bonus issuance of 1 share for every 45 shares held. The overall dividend payout is equivalent to 11.5 fils per share.
The cash plus equity dividend for 2020 reflected the board's intention "to prioritise returning value to shareholders" and to "secure further growth opportunities", the company said.
Tabreed has 86 district cooling plants and operates in the UAE, Saudi Arabia, Bahrain, Qatar and Oman.
It provides district cooling to developments such as Burj Khalifa, the Sheikh Zayed Grand Mosque, Dubai Metro and Ferrari World in the UAE, Bahrain’s financial centre and the Jabal Omar Development in Saudi Arabia.
Last year, Tabreed acquired a majority stake in Emaar Properties’ Downtown Dubai district cooling business for Dh2.48bn. The deal gave Tabreed an 80 per cent stake, with Emaar retaining the balance under a long-term partnership deal.
The company also bought cooling plants in Masdar and is assessing the development of large-scale cooling plants in Sharjah through a joint venture with Bee’ah.
