Emirates Central Cooling Systems Corporation (Empower) announced its financial results for the fiscal year 2022, with a total revenue of AED2.8 billion, and with a remarkable growth of 13.3 percent compared to 2021.
The company has recorded a net profit of AED1.001 billion, representing an increase of 7 percent compared to the previous year. The company has also proposed a dividend amount of AED425 million for the second half of the year 2022, as stated in the prospectus. This outstanding performance reflects the confidence in Empower by its customers and stakeholders, and the economic boom of Dubai.
On this occasion, Ahmad bin Shafar, CEO of Empower, 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. The successes achieved during 2022 are unprecedented, as the company’s portfolio is growing at an accelerated pace serving a diversified portfolio of projects.”
He further stated that Empower is committed to distributing a total dividend of AED850 million per annum for the first two years, subject to the approval of Board of Directors and General Assembly.
Bin Shafar stressed that Empower's leadership is creating a sustainable business model and meeting the growing demand for district cooling services. The quality and sustainability of its services and advanced infrastructure has made it one of the world's largest player in the district cooling industry, and the most capable for expansion and planned growth, he added.
"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."
Bin Shafar pointed out that 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 percent compared to 2021.
The CEO also commented that the company has worked hard during 2022 to provide district cooling services to various regions in Dubai by expanding its network to more than 380 kilometres by the end of the year, allowing the company to increase its share in the Dubai’s district cooling market to more than 80 percent.
He concluded that in 2023 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 the Emirate of Dubai."
Empower caters to the vital sectors in the Emirate of Dubai, as it provides district cooling services to more than 64 percent of the residential buildings and 15 percent of the commercial buildings in Dubai. The hospitality sector's share is 14 percent and the health sector accounted for 3 percent, with the remaining 4 percent distributed among the education, entertainment, retail sectors, and others.
Bin Shafar said that catering to various sectors in Dubai will continue with the aim of helping the sectors assume their responsibilities in reducing carbon emissions and enhancing Dubai's endeavours to achieve a green economy and sustainable development.
District Cooling Plants
During 2022, Empower has announced the commencement of operations of the first phase of its Zabeel District Cooling plant with a production capacity of 27,750 refrigeration tonnes (RT). The company indicated that the total production capacity of the plant will reach 50,000 RT upon its completion, noting that the interconnection between the new Zabeel Plant and the Dubai International Financial Centre 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.
Empower has also awarded a contract in the past year, for the construction of a new-generation district cooling plant in the Dubailand Residence Complex development, for a total value of AED 193 million, with the aim of providing environmentally-friendly world-class district cooling services to the development. The plant will have a production capacity of 23,500 RT with the completion of the first phase, and is set to be operated during the first quarter of 2023. The company indicated that the total capacity of the new plant will reach 47,000 RT upon completion of the whole project.
Also, during 2022, the company announced the commencement of a scaling up plan that includes huge expansions and qualitative developments of the infrastructure of its district cooling systems in the Business Bay region, bringing its efficiency to unprecedented levels and making the Business Bay region one of the single largest and independent urban district cooling project in the world with a total capacity of 450,000 RT through six DC plants and 10 thermal energy storage (TES) systems, including the current and upcoming plants and systems.
Empower confirmed that it is moving forward with thoughtful investments to expand its operations in Dubai, as part of its commitment to modernise and develop its facilities and technical staff in order to meet the increasing demand for its services from individuals, establishments and companies.
News Source: Emirates News Agency