12/08/2026 05:22 AST
National Central Cooling Company (Tabreed) today (August 11) announced its financial and operational results for the six-month period ended June 30, 2026, reporting revenue of AED1.13 billion ($307 million) and a net profit of AED192 million ($52.2 million).
Tabreed delivered revenue growth of 2 percent year-on-year during the first half of 2026, supported by fixed capacity charges, ongoing capacity expansion, and its diversified presence across the district cooling business value chain.
Its operational performance remained resilient, enabling strong operating cash generation and healthy free cash flow conversion during the first half of the year, while further enhancing its balance sheet position.
Connected capacity increased by 15% year-on-year to 1.58 million Refrigeration Tonnes (RT), clearly demonstrating the strength of Tabreed's long-term growth strategy, while the period also saw organic capacity increase by 4,500 RT following the completion of various projects.
Cooling consumption volumes reached one billion refrigeration tonne hours (RTh) during the first half of 2026, reflecting milder weather conditions compared to the same period in the previous year.
On the solid performance, Chairman Dr Bakheet Al Katheeri said: "Tabreed's essential role in this nation's utilities infrastructure remains unassailable. And the company's operating performance during the first half of 2026 clearly demonstrates the continuing strength of its core business, as well as the vitality of district cooling within the markets we serve, bringing long-term revenue visibility and sustainable returns for shareholders."
"Our recent portfolio expansion, including the acquisition - with our partners CVC DIF - of Abu Dhabi's PAL Cooling, as well as ongoing organic growth initiatives, demonstrates the wisdom of our disciplined approach to investing in high-quality infrastructure assets with long-term cash generation potential," he stated.
In H1 2026, Tabreed reported ebitda at AED615 million with a margin of 55%. The reported net profit of AED192 million during the period reflected a more normalised expense base, higher financing costs following the 2025 refinancing at prevailing market rates, as well as additional interest expense associated with growth investment funded through acquisition-related debt.
Net operating cash flows increased by 40% year-on-year to AED632 million and continue to support ongoing investment in growth opportunities, balance sheet optimisation and shareholder returns.
The Emirati group enjoys a robust liquidity profile with a stable cash balance of AED661 million (as of June 30) and continues to have access to an undrawn Green Revolving Credit Facility of AED1.2 billion with no near-term debt maturities, it stated.
Tabreed's Board of Directors approved an interim cash dividend, following the first such payout during 2025. An amount of 5 fils per share was approved for H1 2026, representing a dividend payout ratio of 74% of net profit and reflecting the Board's continued commitment to disciplined capital allocation, balancing healthy returns for shareholders with the financial flexibility required to invest in future growth opportunities.
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