National Central Cooling Co., known as Tabreed, has released its financial results for the year 2024, marking another successful year with substantial growth in revenue and profit. The UAE-based district cooling giant reported a revenue of AED 2.434 billion, representing a 4% increase over the previous year, and a net profit before tax of AED 624 million, a notable 32% rise from 2023.

Tabreed's EBITDA also saw a 5% increase, reaching AED 1.252 billion, with an improved margin of 51%. These promising figures were largely driven by a 5% increase in consumption volumes, totaling 2.66 billion refrigeration ton hours (RTH), and an addition of 23,756 Refrigeration Tons (RT) to its connected capacity. This expansion was fueled by new greenfield plants in the UAE and Oman, alongside capacity enhancements in existing plants in India and Egypt.

The company also demonstrated strong cash flow generation, with AED 1.2 billion from operations after working capital changes and AED 970 million in free cash flows. A significant portion of this cash was utilized to optimize the balance sheet by repurchasing USD 207 million of its outstanding sukuk, leading to a 15% saving in net financial costs for 2024. This strategic debt management has improved Tabreed's net debt to EBITDA ratio from 4.1x in 2023 to 3.7x.

The Board of Directors has recommended a dividend payment of 15.5 fils per share, reflecting a commitment to shareholder returns. Over the past five years, Tabreed's dividends have grown at a compounded annual growth rate of 8%, highlighting its financial resilience and positive outlook.

Given the company's strong financial performance, strategic expansion, and commitment to debt reduction, investors might consider holding their positions in Tabreed. The company's proactive strategies in expanding its capacity and optimizing its financial structure suggest that it is well-positioned to capitalize on future growth opportunities in the GCC and beyond.