Emirates Central Cooling Systems Corporation PJSC (Empower), the world’s largest district cooling services provider, on Monday reported first quarter revenue of Dh538 million, an increase of 8.8 per cent, and earnings before interest, taxes, depreciation and amortisation (Ebitda) of Dh313 million, with a growth of 8.2 per cent, compared to the same period of 2023.
Empower earned Dh182 million as profit before tax with an impressive growth of 8.6 per cent compared to the same period of 2023. Net profit after tax amounted to Dh166 million for the quarter ended March 31, 2024.
According to its financial statements, Empower has recorded a consolidated revenue of Dh3.1 billion during the past twelve months, between April 2023 and March 2024, compared to Dh2.8 billion between April 2022 to March 2023, posting a remarkable growth of 9.2 per cent. Based on the financial statements, Empower’s Ebitda for the last 12 months (April 2023 to March 2024) amounted to Dh1.5 billion, compared to Dh1.4 billion for the period April 2022 to March 2023, i.e. growth of 6.2 per cent.
Ahmad Bin Shafar, CEO of Empower, attributed the growth in the first quarter of this year to heightened demand for the company’s services across various projects in Dubai. “We saw a significant demand from the wide range of new mixed-use projects that joined Empower’s portfolio during the recent period, resulting in new growth rates in the volume of production and operational capacity,” he said.
Bin Shafar emphasised that the primary factor driving Empower’s financial performance due to the recovery of div
erse economic activities and various sectors in Dubai, with a particular emphasis on the real estate sector, which is central to the company’s business and operations.
Quarterly updates
The first quarter witnessed a significant increase in Empower’s business, with the signing of 37 new contracts to provide over 34,000 refrigeration tons to various projects and buildings in Dubai. This indicates a growing acceptance of environmentally friendly district cooling services among real estate developers and building owners in the Emirate. Additionally, the company’s connected capacity has grown to over 1,522,000 refrigeration tonnes (RT), having added around 10,000 RT during the quarter.
Empower’s annual general meeting approved the Board of Directors’ proposal to distribute cash dividends to shareholders for the second half of 2023 totaling Dh425 million (Dh0.0425 per share), equivalent to 42.5 per cent of the company’s paid-up capital. This amount was paid during the month of April and with this dividend payment, the Company fulfilled its commitment to distribute Dh850 million (Dh0.085 per share) as annual dividends.