Empower sets global district cooling industry record with Dh1 billion net profit in 2022

Emirates Central Cooling Systems Corporation (Empower), the world's largest district cooling services provider, reported on Monday a 7.0 per cent year-on-year surge in net profit to Dh1.001 billion for 2022, a global record in the district cooling industry.

Empower generated revenue of Dh2.8 billion, up 13.3 per cent year-on-year basis, and proposed a dividend of Dh 425 million for the second half of the year 2022.

“This outstanding performance reflects the great and continuous confidence in Empower by its satisfied customers and stakeholders, and the economic boom of Dubai,” a company statement said.

"The year 2022 marks an important milestone in the history of Empower and a significant event in its journey towards growth and prosperity, especially following its listing on the Dubai Financial Market,” said Ahmad bin Shafar, CEO of Empower.

Describing the success achieved during 2022 as unprecedented, he said the company’s portfolio is growing at an accelerated pace serving a diversified portfolio of projects. He said Empower is committed to distributing a total dividend of Dh850 million per annum for the first two years, subject to the board of directors and General Assembly approval.

"Thanks to our innovative business model, we have managed to expand and achieve consistent growth based on ambitious proactive plans that focus on upgrading the capabilities of our teams, investing in infrastructure, and adopting modern and advanced technologies in its kind," said Shafar.

On the company’s plan going forward, Sharfar said: “We seek to add new production capabilities that contribute to reducing costs and enhancing energy efficiency through using the most advanced technologies that we have developed."

By the end of 2022, Empower has provided district cooling services to more than 1,463 buildings, most notably the recently added Atlantis The Royal Hotel, Museum of the Future, Marsa Al Arab, One Zabeel, Wasl1 and many other huge iconic developments to the company’s portfolio, bringing the demand for district cooling services high by 13.3 per cent compared to 2021.

During the current year, Empower will mainly focus on "ensuring profitable and sustainable returns to its shareholders, investing in developing the district cooling infrastructure of the company, and expanding its transmission and distribution networks to cover more regions in Dubai," said Shafar.

In 2022, Empower announced the commencement of operations of the first phase of its Zabeel District Cooling plant with a production capacity of 27,750 refrigeration tons (RT). The total production capacity of the plant will reach 50,000 RT upon its completion. The interconnection between the new Zabeel Plant and the Dubai International Financial Center Plant will bring a total production capacity to 112,000 RT.

The company has also started the operations of the first phase of its fourth district cooling plant in the Business Bay area, in Dubai, with a production capacity of 27,750 RT, and the total production capacity of the plant will reach 50,000 RT upon the completion of all construction phases by the end of September 2023.

Last year, Empower expanded its network in Dubai to more than 380 kilometers, allowing the company to increase its share in Dubai’s district cooling market to more than 80 per cent. Currently, it provides district cooling services to more than 64 per cent of the residential buildings and 15 per cent of the commercial buildings in Dubai. The hospitality sector's share is 14 per cent and the health sector accounted for 3.0 per cent, with the remaining 4.0 per cent distributed among the education, entertainment, retail sectors, and others.

— issacjohn@khlaeejtimes.com

• Business