Dubai’s Emirates Central Cooling Systems Corporation PJSC (EMPOWER), the provider of district cooling services, announced its financial results for the first half of 2024. The company reported total revenues of AED1.352 billion ($368 million) and EBITDA of AED693 million. Empower’s first six months’ revenue and EBITDA grew by 10.3 percent and 6.0 percent respectively in 2024, compared to the same period of the previous year. The company earned AED428 million ($116.52 million) as profit before tax, an impressive growth of 6.3 percent compared to the same period of 2023. The Net Profit after tax amounted to AED390 million ($106.17 million) for the six months ended June 30, 2024.
Driving factors
Ahmad Bin Shafar, CEO of Empower, explained that the company’s sustainable financial performance is driven by the increasing demand for its services. This is primarily due to two factors: first, real estate developers and building owners are increasingly adopting environmentally friendly practices, seeking cooling systems that protect natural resources, reduce emissions, optimize energy consumption, and lower costs. Second, the growing occupancy rates in real estate projects, particularly in the residential segment, and the continuous addition of new projects to Empower’s portfolio, are fueling the demand for its district cooling services.
These factors have contributed to the diversity of Empower’s customer base, which includes residential, commercial, healthcare, hospitality, retail, education, entertainment, and other sectors.
Consolidated financial performance
In its statement to the Dubai Financial Market (DFM), Empower reported that its consolidated revenues for the last twelve months (July 2023 to June 2024) recorded AED3.16 billion, a remarkable growth of 10.4 percent compared to AED2.86 billion during the period from July 2022 to June 2023. The company’s EBITDA for the period July 2023 to June 2024 was AED1.50 billion, recording a growth of 5.5 percent compared to AED1.42 billion for the period from July 2022 to June 2023.
Expansion of Empower’s cooling capacity
During the first half of 2024, Empower signed 56 new contracts to provide more than 58,300 refrigeration tons (RT) of cooling capacity, reaching a total contracted capacity of more than 1.72 million RT. These new contracts include projects in various areas of Dubai, such as 19,000 RT in Jumeirah Village, 7,200 RT on Sheikh Zayed Road, 6,900 RT in Meydan, and 6,300 RT in Jumeirah Lakes Towers.
Read more: Empower’s logo debuts on NASDAQ screens at New York’s Times Square
Total connected capacity
Empower’s total connected capacity has increased to more than 1.53 million RT, with an addition of over 20,000 RT during the first half of the year. In April, the company signed an agreement with the Al Habtoor Group to supply the world’s largest residential icon, Al Habtoor Tower, with 7,200 RT (equivalent to 75 percent of the peak cooling capacity of the world’s tallest building, Burj Khalifa). Expected to have a population of over 5,000 people, the tower will start receiving Empower’s world-class services during the year 2025.
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