Empower records $44 m net profit
Dubai, February 29, 2012
Leading provider of district cooling services, Empower, has a recorded net profit of Dh162 million ($44.11 million) for the fiscal year ended December 2011, representing a 25 per cent increase over 2010.
The company’s total revenues reached Dh670 million ($182.4 million), an increase of 40 per cent over the previous year, said a statement from Empower.
The announcement was made at a press conference held yesterday (February 28) at the Grand Hyatt in Dubai.
Ahmed Bin Shafar, CEO of Empower, said: “Empower’s operations grew remarkably in 2011 due to higher demand. We also expanded our footprint and enhanced the infrastructure and network in real estate projects to cater to the needs of our rapidly increasing client base. Moreover, the company worked on training its personnel across all levels, which has definitely contributed to these positive results.”
Speaking about the funding for Empower's expanding operations, Bin Shafar said the company’s funding options included, internal cash generated from operations, medium to long term funding from banks and financial institutions and shareholders equity contributions.
He said Empower adopted a clear strategy for 2011, an extension of the company’s strategy in previous years. Bin Shafar said this strategy revolved round creating cooling capacities based on the actual demand for district cooling services. The company also increased its personnel by 12 per cent in 2011.
Bin Shafar said the company’s performance was in line with the growth of the district cooling sector in the UAE.
The company achieved an increase of 12 per cent in its cooling capacity, with over 370,000 refrigeration tons (RT) in 2011, the statement said.
“The challenges facing the development of the industry in the UAE include lack of visibility to project development timelines and robust strategy for capacity creation in many of the district cooling companies which has led them to financial difficulties,” Bin Shafar said.
“The Gulf district cooling industry is growing at the rate of 15 to 20 per cent and the biggest obstacle in the way of its progress was the absence of long term planning among the companies working in the district cooling industry,” he said.
He said that the Middle East is still in its infancy in district cooling, compared to the scale of development across the region, and commended the regional governments for encouraging the environment-friendly cooling technologies. – TradeArabia News Service