Emirates Central Cooling Systems (EMPOWER) H1 2024 earnings summary

Executive summary

• Delivered robust operational and financial performance in H1 2024, with revenue up 10.3% year-over-year to AED 1,352m and net profit after tax of AED 390m, driven by strong demand and portfolio expansion.

• Maintains position as the world's largest district cooling services provider, recognized by Dubai Supreme Council of Energy and winner of four IDEA 2024 awards.

• Benefiting from Dubai's strong macroeconomic environment, real estate growth, and rising demand for district cooling services.

• 54 new agreements signed in H1 2024, increasing total contracted capacity to 1.72 million RT, including a major contract for Al Habtoor Tower.

Financial highlights

• H1 2024 revenue reached AED 1,352m, up from AED 1,225m in H1 2023; EBITDA rose to AED 693m from AED 655m.

• Net profit after tax was AED 390m, with operating profit at AED 524.4m and gross profit at AED 637.4m.

• Gross margin was 47.2%; EBITDA margin 51.3%; net profit margin 28.8%.

• Net debt stood at AED 3,811m, with net debt/LTM EBITDA at 2.5x.

• Cash and cash equivalents at 30 June 2024 were AED 1,333.6m, up from AED 538.8m at year-end 2023.

Outlook and guidance

• Mid-term guidance targets connected capacity of 1,858k RT+ and revenue growth of 6.5–7.5% per year.

• EBITDA margin expected to remain strong at 48–50% through 2027.

• District cooling market projected to grow at a CAGR of 7.94% through 2031, with expansion plans in the UAE and regionally.

• UAE GDP growth forecast revised upward to 4.2% for 2024 and 5.2% for 2025.