Tabreed's Q1 2025 Financial Results Show Steady Growth Amid Major Developments
National Central Cooling Company PJSC (Tabreed) has released its Q1 2025 financial results, showcasing continued growth in EBITDA and net profit, alongside significant strategic developments.
Summary
Tabreed's Q1 2025 financial results reveal a 4% increase in EBITDA and a 3% rise in net profit, with strategic growth initiatives including a major greenfield project and a successful Green Sukuk issuance.
Tabreed's Q1 2025 Financial Results Show Steady Growth Amid Major Developments
National Central Cooling Company PJSC (Tabreed), a leader in district cooling, has announced its financial results for the first quarter of 2025, reporting a 4% year-on-year increase in EBITDA to AED 283 million and a 3% rise in net profit to AED 115 million. The EBITDA margin improved to 61%.
Key Financial Indicators
| KPI | Q1 2025 | Q1 2024 | Change (%) |
|---|---|---|---|
| Revenue | Not disclosed | Not disclosed | N/A |
| EBITDA | AED 283 million | AED 272 million | 4% |
| Net Profit | AED 115 million | AED 111 million | 3% |
| Earnings per Share | Not disclosed | Not disclosed | N/A |
| Debt Ratio | Not disclosed | Not disclosed | N/A |
| Interest Coverage Ratio | Not disclosed | Not disclosed | N/A |
Strategic Developments
Tabreed has made significant strides in enhancing its long-term growth prospects. The company issued a USD 700 million Green Sukuk at a competitive profit rate of 5.279%, which was oversubscribed, reflecting strong investor confidence. The proceeds were used to refinance existing debt, improving the company's net debt to EBITDA ratio to 3.55x from 3.7x at the end of 2024.
Additionally, Tabreed entered a landmark concession agreement with Dubai Holding Investments to provide district cooling services to Palm Jebel Ali, a significant project requiring an estimated AED 1.5 billion investment. This deal represents approximately 20% of Tabreed's connected capacity.
Conclusion
Tabreed's Q1 2025 results demonstrate its robust financial health and strategic foresight. The company's ability to maintain steady growth in profits and margins, alongside major strategic initiatives, positions it well for future expansion. The successful Green Sukuk issuance and the Palm Jebel Ali project are expected to bolster Tabreed's market position and financial performance in the long term.
Investor Outlook
For investors, Tabreed's continued growth in key financial metrics and its strategic initiatives suggest a positive outlook. The company's proactive debt management and expansion into significant projects enhance its long-term value proposition.
