Empower's 2022 net income climbs 7% on revenue boost

District cooling company aims to increase its market share in the UAE and is exploring regional growth opportunities

Empower signage on the exterior of the company's district cooling plant in Jumeirah Village Circle, Dubai. Bloomberg

Emirates Central Cooling Systems Corporation, better known as Empower, has reported an increase of about 7 per cent in its 2022 net profit as it consolidates its position in the UAE and explores growth opportunities in the region.

The district cooling provider's net profit for the 12 months to the end of December rose to Dh1 billion ($272 million), from Dh935.8 million at the end of 2021, it said on Monday in a filing to the Dubai Financial Market, where its shares are traded.

Revenue for the reporting period stood at Dh2.79 billion, up from Dh2.46 billion at the end of 2021.

“Driven by an ambitious strategy and operating within the established successful operating model, the efforts are directed towards increasing the market share within [the] UAE,” Empower said in the bourse statement.

Following the “robust performance in 2022, the group looks forward to 2023 with more organic and inorganic opportunities in the region”, it said.

The board has proposed a dividend of Dh425 million for the 2022 financial year, which is subject to the approval of shareholders, the company said.

Empower, which started trading on the DFM in November, sold 2 billion shares through its initial public offering, or 20 per cent of its share capital.

The Dubai Electricity and Water Authority and Emirates Power Investment retain 56 per cent and 24 per cent of Empower’s existing share capital, respectively, following the listing.

Empower raised more than Dh2.6 billion from its offering, which drew strong demand from local, regional and international investors and was more than 47 times oversubscribed.

The UAE Strategic Investment Fund, Shamal Holding and the Abu Dhabi Pension Fund were cornerstone investors in the IPO, with a total commitment of up to Dh335 million.

Empower was established by royal decree as a joint venture in 2003 to provide energy through its various plants to Dubai's property sector.

It serves more than 110,000 corporate and individual customers in more than 1,400 buildings with a connected capacity of about 1.4 million refrigeration tonnes and a contracted capacity of about 1.5 million refrigeration tonnes, according to its website.

Its portfolio of projects includes developments such as the Deira Waterfront, Blue Waters, Jumeirah Beach Residence, the Dubai International Financial Centre, Business Bay, Dubai Healthcare City, Jumeirah Lakes Towers, The Palm Jumeirah, Discovery Gardens, Ibn Battuta Mall, the Dubai Design District and Dubai Production City.

Empower's assets at the end of 2022 were valued at Dh9.65 billion, up from Dh9.54 billion at the end of the previous year.