Shareholders of Tabreed authorize the distribution of an initial interim cash dividend
In a significant milestone, the National Central Cooling Company (Tabreed) under the leadership of Dr. Bakheet Al Katheeri as Chairman, has made its largest-ever transactions in the first half of 2025. The company acquired PAL Cooling and secured the Palm Jebel Ali concession, increasing its total capacity to about 2.6 million refrigeration tons (RT).
These landmark developments, marking Tabreed's first-ever interim dividend, have strengthened the foundation for capital-efficient growth, recurring cash flows, and long-term value. The PAL Cooling acquisition and the Palm Jebel Ali concession have been key factors in the company's growth and performance, supported by significant capacity growth and cooling demand in key markets.
The UAE and Saudi Arabia made substantial contributions to Tabreed's growth, highlighting the company's cross-regional status. The company's total connected capacity reached 1.37 million RT in the first half of 2025, a significant increase from the previous year. This growth was reflected in Tabreed's financial performance, with a revenue increase of 3 per cent year-on-year to Dh1.11 billion and net profit reaching Dh276 million.
The successful issuance of a $700 million green sukuk by Tabreed has strengthened the balance sheet and enhanced liquidity. This green sukuk issue, under the company's green finance framework, is a significant step towards sustainable financing. Investment-grade credit ratings from Moody's and Fitch were secured due to this successful issuance.
Robust free cash flow and disciplined capital allocation supported both growth investment and shareholder returns in the first half of 2025. The interim dividend of 6.5 fils per share, representing Dh184.9 million, was approved by Tabreed's shareholders, marking a first in the company's 27-year history. This dividend was a reflection of Tabreed's record first-half performance and strong cooling demand across key markets.
Tabreed's role as a long-term partner in the region's energy transition is being reinforced. The company is embedding sustainability across its operations, deploying renewable energy at select plants and piloting low carbon cooling solutions.
Somshankar Bandyopadhyay, News Editor managing the business section of the publication, shared his thoughts on Tabreed's achievements, saying, "Tabreed's growth and performance in the first half of 2025 are truly impressive. The company's strategic acquisitions and commitment to sustainability are setting a high standard for the cooling industry in the region."
With record new connections of 41.6k RT in the first half of 2025, almost double the capacity added in all of 2024, Tabreed is poised for continued growth and value creation beyond 2025. The company's focus on capital-efficient growth, recurring cash flows, and sustainable financing positions it well for the future, reinforcing its role as a key player in the region's energy transition.
Read also:
- Catastrophe at a U.S. Steel facility in Pennsylvania results in the loss of two lives. crucial details unveiled
- Manipulating Sympathy: Exploiting Victimhood for Personal Gain
- Auto Industry Updates: Geotab, C2A, Deloitte, NOVOSENSE, Soracom, and Panasonic in Focus
- Exploring Money-Making Opportunities in Digital Gaming Worlds
