Operating cash flow climbs 40% to Dh632m as connected capacity rises 15%.
Dubai: Tabreed has approved an interim cash dividend of 5 fils per share for the first half of 2026, marking the second consecutive year of interim payouts after net operating cash flows rose 40 per cent year-on-year to Dh632 million.
National Central Cooling Company, known as Tabreed, reported revenue of Dh1.13 billion for the six months ended June 30, up 2 per cent year-on-year, while net profit reached Dh192 million.
The interim dividend represents 74 per cent of first-half net profit and follows Tabreed’s first interim payout in 2025. The company said the distribution reflects its approach of balancing shareholder returns with funding requirements for future expansion.
Capacity climbs 15%
Connected cooling capacity rose 15 per cent year-on-year to 1.58 million refrigeration tons by the end of June, supported by portfolio expansion and additional capacity from completed projects.
Organic capacity increased by 4,500 refrigeration tons during the period, while cooling consumption reached one billion refrigeration ton hours. Tabreed attributed the consumption level in the first half to milder weather compared with the same period last year.
“Tabreed’s essential role in the UAE’s utilities infrastructure remains unassailable. The company’s operating performance in the first half of 2026 clearly demonstrates the continued strength of its core business and the vitality of district cooling across the markets we serve, providing long-term revenue visibility and sustainable returns for shareholders.”
Dr Bakheet Al Katheeri, Chairman of Tabreed
Tabreed’s recent expansion has included the acquisition of Abu Dhabi-based PAL Cooling in partnership with CVC DIF, alongside continued investment in organic growth projects.
Financing costs weigh on profit
EBITDA reached Dh615 million in the first half, resulting in an EBITDA margin of 55 per cent.
The company said its Dh192 million net profit reflected a more normalised expense base, higher financing costs following its 2025 refinancing at prevailing market rates, and additional interest expenses from acquisition-related debt used to fund growth investments.
Despite these costs, cash generation strengthened, with net operating cash flows rising 40 per cent to Dh632 million. Tabreed said the funds continue to support new investments, balance sheet management and shareholder returns.
Net debt-to-EBITDA improved to 4.57 times by the end of June, while the company maintained investment-grade credit ratings from Moody’s and Fitch.
Tabreed held Dh661 million in cash at the end of the first half and had access to an undrawn Dh1.2 billion Green Revolving Credit Facility, with no near-term debt maturities.
UAE remains key growth market
Tabreed said it will continue to focus on its core UAE market through the remainder of 2026, with a pipeline of potential projects being managed in line with customer delivery schedules.
Timelines for some customer projects remain linked to activity in the broader real estate market, although the company said its underlying project pipeline remains healthy.
Al Katheeri said the company remains focused on integrating its recent investments and pursuing selective growth opportunities while maintaining disciplined capital allocation and creating sustainable long-term value for stakeholders.
“Tabreed continues to surpass itself, providing comfort to millions while conserving precious energy and other resources in its relentless pursuit of operational excellence,” he said.
