Tabreed's Q1 2025 Results: Growth and New Ventures
Tabreed, a leading district cooling company, reports strong Q1 2025 financial results and announces significant new ventures.
Summary
Tabreed has reported robust Q1 2025 financial results, with increases in EBITDA and net profit. The company announced a major new joint venture and a Green Sukuk issuance.
Tabreed, the United Arab Emirates-based district cooling giant, has unveiled its financial results for the first quarter of 2025, showcasing a commendable performance. The company has reported a 4% year-on-year increase in EBITDA, reaching AED 283 million, alongside a 3% rise in net profit after tax to AED 115 million. These figures underscore Tabreed's resilience and strategic prowess in the cooling sector.
One of the most notable developments in Q1 2025 was Tabreed's successful issuance of a USD 700 million Green Sukuk. This move not only attracted significant international investor interest but also allowed the company to refinance its short-term debt into longer maturities, thereby strengthening its balance sheet. The net debt to EBITDA ratio improved to 3.55x, reflecting a solid financial foundation.
Adding to the momentum, Tabreed announced a landmark concession agreement with Dubai Holding Investments to provide district cooling services to the highly anticipated Palm Jebel Ali project. This 250,000 Refrigeration Ton (RT) concession represents a significant expansion of Tabreed's capacity and marks the largest greenfield deal in the company's 27-year history. This strategic venture is set to enhance Tabreed's competitive edge in the dynamic Dubai market.
In addition to these strategic moves, Tabreed's shareholders approved a cash dividend of 15.5 fils per share for 2024, offering an attractive yield of 5.6% based on the share price as of May 12, 2025. This decision reflects the company's commitment to delivering value to its shareholders.
While the company is on an upward trajectory, potential investors should consider the broader economic landscape and industry trends. Given Tabreed's strong financial performance, strategic investments, and solid market position, the recommendation is to hold the stock. This stance allows investors to benefit from potential future growth while monitoring market developments.
Source
Summary
Tabreed, a leading district cooling company, reported its Q1 2025 financial results, showing increases in both EBITDA and net profit compared to Q1 2024. EBITDA rose by 4% to AED 283 million with a margin of 61%, while net profit after tax grew by 3% to AED 115 million. Key developments included raising USD 700 million through a Green Sukuk, which helped refinance debt and improve the balance sheet by converting short-term debt to long-term maturities and reducing net debt by 3%. Additionally, Tabreed announced a significant concession agreement with Dubai Holding Investments to provide district cooling services to Palm Jebel Ali, requiring an investment of AED 1.5 billion. This deal is the largest in the company's history, representing a major milestone. Shareholders also approved a cash dividend of 15.5 fils per share for 2024, yielding 5.6% at the current share price.
