Emirates Central Cooling Systems Corporation (Empower) has announced that it had recorded solid results for the first quarter with a AED166 million ($45 million) net profit over last year's figure of AED167.4 million, while its revenue surged by 8.8% to hit AED538 million ($146.4 million).
Announcing the results for the three-month period March 31, 2024, Empower said its profit before tax stood at AED182 million ($50 million), up 8.6% over last year. Its ebitda was AED313 million, posting a growth of 8.2%.
The first quarter witnessed a significant increase in Empower’s business, with the signing of 37 new contracts to provide over 34,000 refrigeration tons to various projects and buildings in Dubai, it stated.
This indicates a growing acceptance of environment-friendly district cooling services among real estate developers and building owners in the Emirate. Additionally, the company's connected capacity has grown to over 1,522,000 RT, having added around 10,000 RT during the quarter, it added.
According to its financial statements, Empower had recorded a consolidated revenue of AED3.1 billion during the past twelve months, between April 2023 and March 2024, compared to AED2.8 billion between April 2022 to March 2023, posting a growth of 9.2%.
On the results, CEO Ahmad Bin Shafar said: "This remarkable growth in the first quarter is mainly due to heightened demand for the company's services across various projects in Dubai. We saw a significant demand from the wide range of new mixed-use projects that joined Empower's portfolio during the recent period, resulting in new growth rates in the volume of production and operational capacity."
Bin Shafar said the primary factor driving Empower's financial performance and the achievement of exceptional quarterly results is the rise in recurring and sustainable revenues with focus on increasing operational efficiencies.
These revenues stem from the recovery of diverse economic activities and various sectors in Dubai, with a particular emphasis on the real estate sector, which is central to the company's business and operations, he added.
At the Annual General Meeting, which was held during the quarter, the shareholders gave the go-ahead to the Board of Directors' proposal to distribute cash dividends worth AED425 million (AED0.0425 per share), equivalent to 42.5% of the company's paid-up capital, for the second half of 2023.
This amount was paid during the month of April and with this dividend payment, the company fulfilled its commitment to distribute AED850 million (AED0.085 per share) as annual dividends, it added.-TradeArabia News Service
