Tabreed Announces Record Interim Dividend Amid Growth
Tabreed's first-ever interim dividend reflects its robust growth and strategic milestones.
Summary
Tabreed reports record revenue and capacity growth, announcing its first-ever interim dividend, marking a significant milestone in its 27-year history.
In a significant move that highlights its robust performance and strategic growth, National Central Cooling Company PJSC, commonly known as Tabreed, has announced its first-ever interim dividend. This decision was approved by shareholders at the General Assembly, marking a pivotal moment in the company's 27-year history. The interim dividend of 6.5 fils per share amounts to AED 184.9 million for the first half of 2025.
Tabreed's financial results for the first half of 2025 reveal a record-breaking revenue of AED 1.11 billion, a 3% increase from the previous year. This surge was driven by heightened cooling demand and significant capacity additions across key markets, particularly in the UAE and Saudi Arabia. The company's net profit also reached AED 276 million, underscoring its strong performance.
A key highlight of Tabreed's growth strategy is its record addition of 41.6k Refrigeration Tons (RT) in the first half of 2025, nearly doubling the capacity added throughout 2024. This expansion brought Tabreed's total connected capacity to 1.37 million RT, reinforcing its position as a leading cross-regional operator in the district cooling sector.
Tabreed's strategic initiatives include the acquisition of PAL Cooling and the Palm Jebel Ali concession, the largest deals in the company's history. These transactions have expanded Tabreed's total site capacity to approximately 2.6 million RT, laying a strong foundation for future capital-efficient growth and recurring cash flows.
Dr. Bakheet Al Katheeri, Tabreed's Chairman, emphasized the company's commitment to delivering sustainable long-term value to shareholders. He noted that the approval of the interim dividend reflects the confidence in Tabreed's scalable platform and strategic milestones.
For investors, Tabreed's strong financial performance and strategic growth initiatives present a compelling case. The company's robust revenue growth, significant capacity expansion, and strategic acquisitions suggest a positive outlook. However, considering the current market conditions and the potential for further strategic developments, a hold position might be prudent for investors looking to benefit from future growth opportunities.
Source
Summary
Tabreed has announced the approval of its first-ever interim dividend of 6.5 fils per share, totaling AED 184.9 million, for the first half of 2025. This decision follows a record performance, with revenue increasing by 3% year-on-year to AED 1.11 billion, driven by increased cooling demand and capacity expansion. The company added a record 41.6k RT of new connections in H1 2025, nearly double the capacity added in 2024, bringing the total connected capacity to 1.37 million RT, with significant contributions from the UAE and Saudi Arabia. Additionally, Tabreed's strategic acquisitions, including PAL Cooling and the Palm Jebel Ali concession, have expanded its total site capacity to approximately 2.6 million RT, supporting long-term growth and value creation.
