Tabreed reports Dh320 million nine-month profit as higher financing costs weigh on earnings

Detailed summary

National Central Cooling Company (Tabreed) reported a net profit of Dh320 million for the first nine months of 2026, as higher financing and operating costs associated with its…

National Central Cooling Company (Tabreed) reported a net profit of Dh320 million for the first nine months of 2026, as higher financing and operating costs associated with its expansion weighed on profitability despite growth in revenue and cooling capacity.

The Dubai-listed district cooling company said revenue increased 3 per cent year-on-year to Dh1.91 billion, supported by higher fixed-capacity charges, capacity expansion and growth across its district cooling businesses.

However, earnings before interest, taxes, depreciation and amortisation (Ebitda) declined 2 per cent to Dh955 million, compared with Dh972 million during the same period last year.

The company maintained an Ebitda margin of approximately 50 per cent despite increased expenses linked to inflation, business development and the integration of its expanded operations.

Tabreed said its profitability was affected by higher financing costs associated with refinancing existing debt and funding new growth investments.

The initial impact of the PAL Cooling joint venture also weighed on earnings, although the company expects its operating contribution to increase as the business expands.

The company did not disclose a year-on-year percentage change in net profit in the results announcement.

Despite these pressures, net operating cash flow increased 20 per cent to Dh882 million, compared with Dh736 million in the corresponding period of 2025.

Cash conversion stood at 92 per cent, supporting the company’s ability to fund investments, service debt and maintain shareholder distributions.

Opening of the article, excerpted from Khaleej Times Business. To read the rest, open the article on the publisher's site.