District cooling company Tabreed reported a revenue of Dh2.4 billion for 2023, marking a 9% increase compared to the previous year. Net profit attributable to the parent, before deferred tax, reached Dh751 million.
The company experienced a decline in net debt during 2023, which was attributed to strong cash generation and proactive debt management efforts. Despite a challenging high-interest rate environment, Tabreed reduced net finance costs by 24%.
To maximise shareholder value, Tabreed’s Board of Directors has recommended a record dividend payment of 15.5 fils per share in cash, reflecting a 15% increase from 2022.
“This time last year I spoke about Tabreed’s carefully planned growth and taking our globally renowned expertise into new markets,” said Khaled Abdulla Al Qubaisi, Tabreed’s Chairman. “We spent 2023 making good on that promise and now operate in six countries, including India, supplying sustainable cooling to our prestigious clients.”
Throughout the year, Tabreed maintained a robust cash flow profile supported by long-term contracts, resilient margins, and efficient working capital management. Net cash from operating activities totalled Dh1.31 billion, with free cash flows increasing by 8% to Dh1.21 billion, driven by substantial operating income and strategic investments.
“During 2023, with the enactment of UAE corporate tax law, there was a one-off, non-cash accounting impact due to recognising a deferred tax liability amounting to Dh359 million, resulting in a reported net profit of Dh431 million for the year,” the company said in a statement.
In a strategic move to diversify its operations beyond the GCC, Tabreed entered the Indian market through a partnership with TATA Realty and Infrastructure Limited. Despite expanding internationally, the company remained focused on optimising its existing portfolio to enhance returns, with total connected capacity reaching 1.303 million RT in 2023.
