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Tuesday, August 31, 2021

Gulf News - District Cooling Company Tabreed’s Deal-Making Spree will keep its Stock Red-Hot

By Century Financial in Century in News

Gulf News - District Cooling Company Tabreed’s...

Vijay Valecha, Special to Gulf News August 31, 2021

Tabreed, the Dh7.96 billion market cap district cooling company, entered an agreement with Mubadala Infrastructure Partners to acquire an additional 50% of the shares in AlWajeez Development Company, which provides district cooling on Al Maryah Island. The deal was signed for Dh311.5 million and is the fourth major acquisition for Tabreed in less than two years.

Earlier, there was the securing of an 80 per cent stake in Emaar’s Downtown Dubai district cooling capacity, those owned by Aldar at Saadiyat Island, and the Masdar City scheme in Abu Dhabi. Tabreed reported a 4 per cent increase to Dh233.5 million in net profit for the first six months of 2021, while group revenue shot up 22 per cent to Dh869 million from Dh710 million a year ago. Profit from operations increased year-on-year by 40 per cent to Dh326 million.

Extend beyond UAE

Having doubled its stake in the Al Maryah scheme, Tabreed continues to deliver on its growth ambitions in key markets. Tabreed owns and operates 84 plants in its portfolio across the GCC, including 75 in the UAE, three in Saudi Arabia, five in Oman and one in Bahrain.

Tabreed underwent a management change by appointing a new CEO in May, and who is committed to grow the company to new trajectories. The company intends to start using artificial intelligence (AI) to predict customer demand based on a weather forecasting system. And ‘wet bulb’ forecasting aims to more accurately forecast customer demand for each 24-hour period to allow for a more efficient operation by optimising production of cooling, using AI.

A feel for investors

In June, Tabreed was named amongst the Top 100 Companies in the Middle East, which will reassure investors that it will be aiming to unlock further shareholder value. The dividend yield is at 1.97 per cent, and the ability to pursue growth opportunities is gaining traction, with the stock gaining 40 per cent on a year-on-year basis.

Source:
Gulf News