Empower announces Q1 2024 results reporting AED 538 million in revenue with 8.8% growth and AED 182 million pre-tax Net Profit with a growth of 8.6%
Emirates Central Cooling Systems Corporation PJSC (ISIN: AEE01134E227) (Symbol: EMPOWER), the world's largest district cooling services provider, has announced its financial results for the first quarter of 2024, showcasing robust growth driven by heightened demand for its services across various projects in Dubai.
The company reported a revenue of AED 538 million for Q1 2024, marking an impressive increase of 8.8% compared to the same period in 2023. Additionally, Empower recorded an EBITDA of AED 313 million, reflecting a growth of 8.2%, and earned AED 182 million as profit before tax, showcasing an 8.6% increase compared to Q1 2023. The net profit after tax amounted to AED 166 million for the quarter ended March 31, 2024.
According to Empower's financial statements, the company achieved a consolidated revenue of AED 3.1 billion over the past twelve months, between April 2023 and March 2024, representing a remarkable growth of 9.2% compared to the previous year. Similarly, Empower's EBITDA for the same period amounted to AED 1.5 billion, reflecting a growth of 6.2%.
Ahmad Bin Shafar, CEO of Empower, attributed the outstanding growth in Q1 2024 to the heightened demand for the company's services across various projects in Dubai. He highlighted the significant demand from new mixed-use projects that joined Empower's portfolio, leading to new growth rates in production volume and operational capacity.
Bin Shafar emphasized that the primary factors driving Empower's financial performance and exceptional quarterly results are the rise in recurring and sustainable revenues, coupled with increased operational efficiencies. These revenues are fueled by the recovery of diverse economic activities and various sectors in Dubai, particularly the real estate sector, which is central to Empower's business and operations.
During the first quarter, Empower saw a significant increase in its business, signing 37 new contracts to provide over 34,000 refrigeration tons to various projects and buildings in Dubai. This indicates a growing acceptance of environmentally friendly district cooling services among real estate developers and building owners in the Emirate. Additionally, Empower's connected capacity grew to over 1,522,000 RT, adding around 10,000 RT during the quarter.
Empower's organizational performance was also highlighted during the quarter through partnerships with various institutions focused on advancing district energy. The company was awarded a Green Certificate by ‘Data Hub Integrated Solutions (Moro)’ for hosting its major IT workloads on Moro Hub’s Green Data Center, showcasing Empower’s commitment to environmental sustainability.
Furthermore, Empower signed a Memorandum of Understanding (MoU) with ASHRAE for the development of a unified District Cooling Standard to be adopted globally by 2025. The company also collaborated with ASHRAE on a research study to develop third-generation District Cooling Systems, aiming to identify emerging trends and advancements in DC technology.
In recognition of Empower's achievements, Ahmad bin Shafar was honored by the International District Energy Association (IDEA) for consolidating the company’s position as the world's largest district cooling services provider and for its contributions to social and economic sustainability.
Empower's Annual General Meeting approved the distribution of cash dividends totaling AED 425 million for the second half of 2023, fulfilling the commitment to distribute AED 850 million as annual dividends.
