Empower posts net profit of AED 410 million
February 23rd, 2015
District cooling company’s 2014 revenues reach AED 1.50 billion
Empower, the world’s largest district cooling service provider, today announced that its 2014 net profit reached AED 410 million, for the fiscal year ending December 31, 2014. The figure demonstrates 65 per cent growth year on year (YoY) from 2013. Total revenues for the year reached AED 1.50 billion, a 76% increase YoY.
“2014 represented a significant year in Empower’s growth story, showing impressive results in both quantity and quality of our work,” said Ahmad Bin Shafar, Chief Executive Officer, Empower. “In the last year, we have undertaken an ambitious development strategy to improve our infrastructure, reasserting our commitment to provide world- class district cooling services.”
“The vision of our leaders, under His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has contributed to our success year after year over the last decade. It is their support that has primed this country to not only build businesses, but also build sustainable businesses,” he continued.
Revenue growth for the company includes the first full year of operations following the acquisition of Palm District Cooling (PDC), a Dubai- based entity that Empower acquired in Q4, 2013.
“Following the acquisition of Palm District Cooling last year, we have grown into a company that holds the largest district cooling portfolio in the world,” continued Bin Shafar. “This has resulted in the growth of our projects, capacity, assets and customers. Our company is providing services to many prestigious projects and in the last 12 months, we have added more unique and world-class projects to our portfolio.”
Infrastructural Investments to Develop and Enhance Operations
Empower began 2014 with the acquisition of PDC, from Istithmar World, in a US$500 million agreement and the year was significant as Empower successfully aligned operations of both entities.
Notable new projects signed by Empower last year include:
• An AED750 million agreement with TECOM Investments’ to provide Dubai Design District (d3) with 120,000 RT of district cooling services, signifying a 12% capacity addition to Empower’s network;
• A significant retrofitting agreement with Jumeirah Group whereby Empower will convert the systems of iconic properties like Emirates Towers, Burj-Al Arab, Jumeirah Beach Hotel and the Madinat Jumeirah to district cooling.
During 2014, Empower also completed its 2nd Plant in Business Bay Project, which is the region’s first district cooling facility of this size built as per the green building principles.
The company continues generating healthy earnings before interest, taxes, depreciation, and amortization (EBITDA) and has accordingly re-paid loans amounting to AED 350 million during the year. “We have also declared dividends to our shareholders for the second consecutive year, which demonstrates the robustness and the strength of our business model and our financing strategy. The dividend payment this year amounts to AED 250 million,” said Bin Shafar
“Our development strategy, coupled with government support for sustainable sectors like district cooling, will enable Empower to continue growing in the future,” concluded Bin Shafar