Emirates Central Cooling Systems (EMPOWER) H2 2024 earnings summary

Executive summary

• Achieved robust operational and financial performance in 2024, with revenue up 7.4% to AED 3.26bn and operating profit rising 6.5% to AED 1.19bn.

• Maintained position as the world's largest district cooling provider, with over 1,566k RT connected and 1,764k RT contracted capacity.

• Signed 120 new agreements, completed 20 years of operations, and received multiple awards for innovation and sustainability.

• Long-term, diversified customer base and exclusive arrangements in key Dubai developments support future growth.

Financial highlights

• Revenue rose 7.4% year-over-year to AED 3,260m; EBITDA increased 6.2% to AED 1,551m; profit before tax up 5.9% to AED 998m.

• Net profit after tax declined 5.4% to AED 908m, reflecting a new 9% corporate tax starting 2024; net profit attributable to equity holders was AED 896.8m.

• EBITDA margin remained strong at 47.6% for 2024.

• Net debt stood at AED 3,532m–3,560m, with net debt/EBITDA at 2.3x.

• Cash and cash equivalents increased to AED 1,937m–1,940m at year-end.

Outlook and guidance

• Expected connected capacity additions of 165,000–185,000 RT by 2026, targeting 1,725–1,750k RT.

• Gradual de-leveraging to c.2.5x net debt/EBITDA in 2025 and below 2.0x in the medium term.

• Committed to AED 850m annual dividend for the first two years post-IPO.

• Global district cooling market projected to grow at 7.8% CAGR from AED 98bn in 2024 to AED 177bn by 2032.