2011 net profit reached AED 162 million
Regional district cooling services provider, Emirates Central Cooling Systems Corporation (Empower), recorded a net profit of AED 162 million for fiscal year ended December 2011, representing a 25 percent increase over 2010.
The company’s total revenues reached AED 670 million, an increase of 40 percent over the previous year.
The results were announced at a press conference held at Dubai Grand Hyatt Hotel on February 28.
Ahmed Bin Shafar, CEO of Empower, said: “Empower’s operations grew remarkably in 2011 due to higher demand. We also expanded our footprint and enhanced the infrastructure and network in real estate projects to cater to the needs of our rapidly increasing client base. Moreover, the company worked on training its personnel across all levels, which has definitely contributed to these positive results.”
Bin Shafar revealed that the company’s funding options for its expanding operations, included internal cash generated from operations, medium to long term funding from banks and financial institutions, and shareholders equity contributions.
He added that Empower adopted a clear strategy for 2011, an extension of the company’s strategy in previous years. Bin Shafar said this strategy revolved around creating cooling capacities based on the actual demand for district cooling services. The company also increased its personnel by 12 percent in 2011.
Empower, a joint venture between Dubai Technology and Media Free Zone (TECOM) Investments and Dubai Electricity and Water Authority (DEWA), also achieved an increase of 12 percent in its cooling capacity, with over 370,000 Refrigeration Tonnes (RT) in 2011.
Bin Shafar expressed his satisfaction over the company’s performance which, he said, was in line with the growth of the district cooling sector itself in the UAE. He emphasised that the UAE continues to be a leading player in the district cooling industry, not only in the region but also on the global front.
He mentioned the challenges holding back the development of the industry in the UAE, which included lack of visibility to project development timelines and a robust strategy for capacity creation in many of the district cooling companies, which has led them to financial difficulties.
Bin Shafar claimed that the Gulf district cooling industry is growing at a rate of 15 to 20 percent and the biggest obstacle in the way of its progress was the absence of long term planning among the companies working in the industry. He pointed out that the Middle East was still in its infancy in district cooling, compared to the scale of development across the region, and commended the regional governments for encouraging the uptake of environment-friendly cooling technologies.