Abu Dhabi – The National
The National Central Cooling Company (Tabreed) has announced its financial performance for the six-month period ending June 30, 2025. The company reported revenues of 1.11 billion dirhams and a net profit of 276 million dirhams. These results reflect the ongoing strategic momentum of Tabreed’s portfolio, supported by improved margins, cost discipline, and sustained strong demand, paving the way for further growth in the future.
Revenues for the group increased to 1.11 billion dirhams in the first half of the year, showing a 3% year-over-year growth, driven by rising cooling demand and significant capacity additions across its main markets. Consumption volumes also grew by 3% year-over-year, with a notable acceleration of up to 8% in the second quarter, highlighting seasonal impacts and increased utilization of Tabreed’s network.
Net profits for the company rose to 276 million dirhams in the first half of the year, reflecting a 2.5% increase, bolstered by the company’s operational scale and cost management efficiencies. Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 5% to 632 million dirhams, with margin improvements reaching 57%.
Dividend Distribution
In light of Tabreed’s strong financial position and its ability to continue generating cash flows, the Board of Directors has proposed an interim dividend of 6.5 fils per share for the first half, representing a distribution ratio of 67% of net profits. This marks the company’s first interim dividend in its history, reflecting the Board’s confidence in Tabreed’s performance and future prospects, as well as its commitment to delivering sustainable long-term value to shareholders. The final decision on the dividend will be subject to approval by shareholders at the upcoming general assembly meeting expected in September 2025.
Operational Capacity
Tabreed’s total contracted capacity reached 1.37 million refrigeration tons following the addition of a record 41.6 thousand refrigeration tons during the first half of 2025, nearly doubling the total added capacity for all of 2024. This growth was fueled by the addition of 18 thousand refrigeration tons from new connections in the UAE and 23.6 thousand refrigeration tons in regional markets, enhancing Tabreed’s position as a regional operator across markets.
In conjunction with its exceptional operational growth, Tabreed initiated strategic actions in June by announcing the acquisition of the company “Pal Cooling” from the Multiply Group through a 50/50 joint venture with CVC Capital Partners.
This acquisition, which is still subject to regulatory approvals, is expected to add over 182 thousand refrigeration tons to the company’s portfolio, increasing its operational capacity to 1.55 million refrigeration tons, a 13% rise. The deal encompasses eight franchises with significant growth potential, anticipated to boost operational capacity to 600 thousand refrigeration tons. Furthermore, it will expand Tabreed’s long-term franchise base and customer network, including new partnerships with Madinat, securing future operational capacity exceeding 1 million refrigeration tons, equivalent to 80% of the current operational capacity.
New Stations
Simultaneously with these pivotal developments, Tabreed continued to enhance its portfolio by commencing operations at three new stations in both local and regional markets during the first half of the year, adding a total operational capacity of 28.6 thousand refrigeration tons. These stations were established to meet the rising demand in rapidly growing urban and industrial centers, strengthening Tabreed’s operational capacity and expansion while solidifying its presence in key local and international markets.
Moreover, Tabreed has also supported its strategic growth by signing an exclusive concession agreement with Dubai Holding Investments to provide district cooling services for the “Palm Jebel Ali” project in Dubai, featuring an exclusive operational capacity of 250 thousand refrigeration tons, which is the largest new project in the company’s history.
The acquisition of “Pal Cooling” and the concession agreement for the Palm Jebel Ali project represent significant strategic moves for Tabreed, contributing to an increase in the company’s total operational capacity to around 2.6 million refrigeration tons. These initiatives enhance the company’s capabilities for long-term growth, which relies on capital efficiency and clear future cash flows.
Through the implementation of new projects and long-term concessions, along with geographical expansion, Tabreed is poised to secure its position for sustainable growth through the remainder of 2025 and beyond.
Strong Results
Dr. Bakhit Al-Muhairi, Chairman of Tabreed, stated: “Tabreed continues to demonstrate its position and expansion capability by delivering strong financial results while advancing its agenda for long-term growth. The record operational capacity additions during the first half, following major deals like the Palm Jebel Ali project and the strategic acquisition of Pal Cooling, bolster our status as a regional operator across markets and a reliable infrastructure partner committed to long-term value creation.”
“As a Board, we will continue to focus on disciplined capital utilization and sustainable returns. Our proposal for the first interim dividend in Tabreed’s history reflects a balance between growth and value creation.”
A Major Milestone
Khaled Al-Marzouqi, CEO of Tabreed, remarked: “The signing of the acquisition deal for Pal Cooling not only marks a pivotal step for Tabreed’s presence in Abu Dhabi but also serves as a significant milestone in our long-term evolution as a key partner in the development of infrastructure across cities, sectors, and digital systems throughout the region.”
“Today, Tabreed is more than just a provider of cooling services; we are developing high-performance, future-ready infrastructure capable of delivering sustainable long-term value while prioritizing operational efficiency and growth as core elements.”
“In light of our clear vision for operational capabilities targeting a total of around 2.6 million refrigeration tons, we remain focused on enhancing capital efficiency, operational excellence, and readiness to lead in new markets and sectors where district cooling plays a fundamental role in development and growth.”