National Central Cooling Company (Tabreed), the Abu Dhabi-based district cooling company, reported flat revenue for the first quarter of 2025 as consumption decreased nearly 7 per cent due to colder-than-average weather in the UAE.
EBITDA and net profit increased year-on-year, but group revenue slipped marginally by AED2 million (US$540,000) to AED466 million (US$126.9 million). For Q1 2024, the company had reported revenue of AED468 million (US$127.4 million).
Tabreed’s EBITDA increased by 4 per cent YoY to AED283 million (US$77.1 million), with an improved margin of 61 per cent, while net profit after tax increased to AED115 million (US$31.3 million), growing by 3 per cent compared to Q1 2024.
While consumption volumes decreased by 7 per cent in first quarter, Tabreed’s total connected capacity reached 1.33 million Refrigeration Tons (RT), having added 4,599 RT of new customer connections in the quarter.
Dr Bakheet Al Katheeri, Chairman of Tabreed, focused on the future and his company’s historic recent deal with Dubai Holding Investments.
“On the surface all appears ‘business as usual’ and, indeed, the Q1 results demonstrate a company with stability and dependability at its core. While this is entirely true, behind the scenes, there is incredible drive and energy facilitating substantial expansion in key markets, Dubai being a prime example,” said Dr Al Katheeri.
“Our recent landmark deal with Dubai Holding Investments perfectly encapsulates the spirit of Tabreed, which prizes strategic partnerships with organisations aligned with our values and objectives.
“Tabreed’s resilience is one of its hallmarks and only through prudent financial stewardship is the company in a position to commit to such long-term, significant investments. The value to investors will increase, the positive environmental impact will continue to grow, with greater uptake of its globally renowned services. The future is brighter than ever for Tabreed.”
Major district cooling deal
The Dubai Holding announcement was made in March, which confirmed that Tabreed had entered a concession agreement in partnership with Dubai Holding Investments to exclusively provide district cooling services to Palm Jebel Ali, one of the region’s most eagerly awaited projects.
The 250,000 RT concession is a significant milestone in Tabreed’s history, as it represents roughly one-fifth of the company’s total connected capacity. The network will require an estimated investment of AED1.5 billion (US$410 million), making it the biggest greenfield deal in Tabreed’s 27-year history.
The company owns and operates 92 plants in its portfolio, including 76 in the United Arab Emirates, and provides air-conditioning to such iconic UAE developments as Burj Khalifa, Sheikh Zayed Grand Mosque, Louvre Abu Dhabi, Ferrari World, Emirates Towers, Yas Island, Al Maryah Island, Dubai Mall, Dubai Opera, Dubai Metro and the Jabal Omar Development in the Holy City of Makkah.
