Dubai’s Tabreed explores acquisitions for expansion

Dubai-listed district cooling company Tabreed is aiming to expand through acquisitions and organic growth in the UAE and global markets.

“We aim to grow our connected capacity by 3 percent to 5 percent annually over 2025 to 2027,” chief financial officer Adel Salem Al Wahedi wrote in the company’s 2024 annual integrated board report.

The growth will come from ongoing projects and new ones expected in the next two years, he said.

Tabreed generated AED1.2 billion ($327 million) in cash flows from operations and AED971 million in free cash flows.

“We used our surplus cash to optimise the balance sheet and reduce debt, saving 15 percent in net financial costs,” the CFO said.

Total revenue reached AED2.4 billion last year, mainly driven by the growth in consumption volumes, which rose by 5 percent to 2.7 billion refrigeration tonne hours.

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Connected capacity rose by 23,756 refrigeration tons (RT) to 1.3 million RT.

Tabreed reported a net profit of AED570 million in 2024, compared to AED431 million last year, driven by the impacts of one-time non-recurring items on 2023 net profit.