Tabreed’s Q1-2023 net profit reaches Dh236m thanks to new connections.
Tabreed, the Abu Dhabi-based district cooling company, has reported a significant increase in profits for the first quarter of 2023, thanks to new homes, offices, and an expanding resident base. The company’s profits rose from Dh88 million to Dh236.4 million during the period, while revenue increased by 10% to Dh464 million.
Tabreed’s success was largely due to new connections over the past 12 months, as well as higher consumption volumes. The company signed up more customers and projects, adding an additional 12,000 Refrigerated Tons (RT) in the UAE and Oman, which increased Tabreed’s total connected capacity to 1.27 million RT.
The district cooling company provides energy-efficient and environmentally-friendly cooling solutions to commercial, residential, and government buildings in the UAE and beyond. With district cooling, chilled water is produced at a central location and distributed to multiple buildings through a network of pipes, resulting in lower energy consumption and reduced carbon emissions.
Khaled Abdulla Al Qubaisi, Tabreed’s Chairman, said the company’s performance was a result of its strategic focus on expanding its operations and investing in new technologies. “The first quarter has been strong for Tabreed, and we are well positioned to continue this momentum through the rest of the year,” he said.
The increase in demand for Tabreed’s services is being driven by several factors, including the growing population and increasing number of new buildings in the region. The company has also been expanding its operations in Oman, where it recently won a contract to provide district cooling services for a major mixed-use development.
Tabreed’s CEO, Bader Saeed Al Lamki, said the company is focused on delivering sustainable cooling solutions to its customers and reducing the carbon footprint of its operations. “As the world transitions towards a low-carbon future, we are well-positioned to provide district cooling solutions that are not only environmentally friendly but also economically efficient,” he said.
Tabreed is one of the largest district cooling companies in the world, with a presence in six countries and over 86 district cooling plants. The company’s customers include some of the largest real estate developers in the region, such as Emaar Properties, Dubai Properties, and Abu Dhabi National Exhibitions Company.
Tabreed is looking to expand its district cooling operations in the UAE and internationally, with a focus on sustainable development and reducing carbon emissions. The company recently signed a memorandum of understanding (MoU) with Dubai Municipality to collaborate on district cooling projects that support the city’s sustainability goals.
In addition to expanding its operations, Tabreed is also investing in new technologies to improve the efficiency of its cooling systems. The company is developing innovative solutions such as thermal energy storage, which allows it to produce chilled water during off-peak hours and store it for later use, reducing the need for additional energy consumption during peak periods.
Tabreed’s success is a positive sign for the UAE’s energy sector, which is transitioning towards cleaner and more sustainable sources of energy. The country has set ambitious targets to reduce carbon emissions and increase the share of renewable energy in its power mix, with the aim of reaching net-zero emissions by 2050.
District cooling is expected to play a significant role in achieving these targets, as it can help reduce energy consumption and carbon emissions from air conditioning systems, which account for a significant portion of the country’s energy consumption. The UAE’s district cooling market is expected to grow at a compound annual growth rate (CAGR) of 5.2% between 2021 and 2026, according to a report by Mordor Intelligence.
Tabreed is well-positioned to take advantage of this growth, with its established presence in the UAE and track record of delivering energy-efficient cooling solutions. The company’s success in the first quarter of 2023 is a positive sign for the district cooling industry and the UAE’s transition towards a more sustainable energy future.
