Staff Report,
Dubai, UAE
Emirates Central Cooling Systems Corporation PJSC, the world’s largest district cooling services provider, reported a 5 percent decline in profit to Dh960 million in 2023, from Dh1 billion in 2022. However, it recorded its highest-ever revenue of Dh3.04 billion, experiencing a significant growth of 8.7 percent compared to 2022.
The company’s Earnings Before Interest, Tax, Debt and Amortisation (EBITDA) also grew by 6.2 percent. It paid a cash dividend of Dh850 million during the year 2023 in two equal installments of Dh425 million each in April and October, it said in a statement.
Empower also revealed its operational performance in 2023. The number of buildings served by Empower’s district cooling services reached 1,522 by the end of 2023 with an increase of 4 percent compared to 2022. As much as 64 percent of the total number of buildings served by Empower are residences and 15 percent are commercial and office buildings. The hotel and hospitality sector represents 14 percent, with Empower serving 21 percent of Dubai’s hotels, totaling 821, the health sector accounts for 3 percent, and the remaining 4 percent is distributed among education, entertainment, shopping centers, and other sectors. The total length of the district cooling pipeline network exceeded 398 kilometers with an increase of 4.7 percent compared to 2022.
Ahmad bin Shafar, CEO of Empower, said, “Empower’s exceptional financial performance reflects the unwavering confidence of its shareholders and consumers, solidifying its position as a trusted leader. Our professional teams, combined with these resources and our commitment to investing in advanced technologies and modern cooling plants across Dubai, together represent solid foundations for a unique business model that enables sustained revenue and profit growth, while also delivering environmental benefits that contribute to protecting our climate and natural resources.”
Empower has concluded various Master Development Agreements during 2023 with major real estate developers in Dubai. Most notably the agreement signed with Dubai Maritime City (DMC) to provide cooling services to DMC with a total capacity exceeding 63,000 refrigeration tonnes (RT). Empower will develop district cooling infrastructure that includes two plants and the related distribution network, to cater to 43 existing and upcoming buildings in the DMC development. The district cooling project will be completed in two phases. Empower had announced the completion of all operations to connect the Anwa residential tower in the DMC development in 2023, to its district cooling services network, with a total capacity of 1,260 RT.
Empower has also concluded an agreement with Sobha Properties to supply the Sobha Hartland project with environmentally friendly district cooling services for a cooling capacity of up to 17,000 RT. It will serve eight buildings in the Sobha Hartland from the Meydan Plant.
During 2023, Empower commenced serving Dubai International Airport, one of the busiest airports in the world. Operating with a total capacity of 110,000 RT with a value of Dh1.1 billion, five district cooling plants and the related assets were linked to Empower’s operational, production, distribution, and administrative systems as part of the deal.
It has also completed the qualitative expansion and development of the district cooling infrastructure in the Business Bay region, which hosts the world’s single largest urban district cooling systems, with a total capacity of 450,000 RT spread across six district cooling plant rooms and ten thermal energy storage (TES) tanks including both existing and upcoming facilities.
Bin Shafar said that the company remains committed to supporting various sectors across Dubai in their carbon reduction efforts, aligning with the Emirate’s vision for a green economy and sustainable development.
Empower commenced the operation of its new district cooling plant in the Dubai Land Residence complex (DLRC) with a production capacity of 47,000 RT.
Empower took over an upgradation project of its Jumeirah Beach Residence (JBR) district cooling plant, to equip it with modern, innovative technologies by awarding a contract worth Dh102 million. JBR plant serves 76 towers, 9,000 residences, and 2,000 hotel units, and the modernization project is expected to be completed by 2025.
The company also awarded last year, a set of contracts to build an advanced district cooling plant and expand the district cooling pipeline network in the Jumeirah Beach Hills area. This expansion project will provide a total cooling capacity of 48,000 RT and will serve prestigious residential and tourist destinations in the emirate, including landmarks like Burj Al Arab, Jumeirah Beach Hotel, Marsa Al-Arab, Madinat Jumeirah Living, Madinat Jumeirah, Jumeirah Al-Naseem Hotel.
In May 2023, Empower announced the commencement of construction of reverse osmosis plants in three out of its eight district cooling plants on the Palm Jumeirah island. This initiative is part of the company’s efforts to rationalise freshwater consumption in district cooling operations, aligning with the objectives of the Dubai Demand Side Management Strategy, which aims for a 30 percent reduction in water consumption by 2030. Empower currently commands a significant share, surpassing 80 percent, of the district cooling market in Dubai.
Ends
Also read: Empower signs to cool Jumeirah with 48,000 RT cooling plant and pipeline expansion
