Empower Achieves 10.3% Revenue Increase In H1 2024 Amid Market Demand Surge

Emirates Central Cooling Systems Corporation PJSC (Empower), the largest district cooling services provider globally, has reported its financial results for the first half of 2024. The company achieved total revenues of AED1.352 billion, marking a 10.3 percent year-on-year increase. Empower’s EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) for the first six months rose by 6.0 percent YoY to AED693 million, while profit before tax reached AED428 million, reflecting a 6.3 percent growth YoY. Net profit after tax stood at AED390 million in H1 2024.

"Empower’s robust financial results for the first half of 2024 demonstrate continued success, contributing to Dubai’s economic expansion and delivering enhanced returns to shareholders," Ahmad Bin Shafar, CEO of Empower, said.

The demand for Empower's services is driven by two main factors. Firstly, real estate developers and building owners are increasingly adopting environmentally friendly practices. They seek cooling systems that conserve natural resources, reduce emissions, optimise energy consumption, and lower costs.

The second factor is the rising occupancy rates in various real estate projects, particularly in the residential segment. This trend is coupled with the continuous addition of new projects to Empower’s portfolio.

These factors have contributed to the diversity of Empower’s customer base. The company serves sectors such as residential, commercial, healthcare, hospitality, retail, education, entertainment, and more.

In the first half of 2024 alone, Empower signed 56 new contracts to provide over 58,300 refrigeration tonnes (RT). This brings their total contracted capacity to more than 1.72 million RT.

New Contracts and Projects

The new contracts include providing cooling services across various areas in Dubai. Notable allocations are 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.

Bin Shafar highlighted that Empower's sustainable financial revenues are a result of increasing demand for its services due to these factors.

This significant increase in business activity underscores Empower's role in supporting Dubai's economic growth while delivering value to its shareholders.

The company's strategic focus on expanding its service offerings and customer base continues to drive its financial performance positively.

With inputs from WAM