Empower reveals AED901m net profit in 2020 with 3.4 percent growth

Empower reveals AED901m net profit in 2020 with 3.4 percent growth

DUBAI, 20th January 2021 (WAM) - Emirates Central Cooling Systems Corporation (Empower), the world’s largest district cooling services provider, reported a net profit of AED 901 million with a total revenue of AED 2.26 billion in 2020. Empower’s revenues grew by 3.0% with a net profit increase of 3.4% year-over-year (YoY), a commendable performance given the difficult economic conditions resulting from the global pandemic.

Commenting on Empower's financial results at the annual press conference, Ahmad Bin Shafar, CEO of Empower, said: "2020 has been another successful year for Empower, with growth in its financial as well as operational performance, which is clearly evident from increase in revenues and net profit, additions in the number of district cooling plants, expansion of district cooling pipeline network, increase in customer base and the number of buildings connected with our district cooling services."

The number of buildings that Empower provides with its district cooling services exceeded 1,252 and the customer base has reached more than 140,000. The total cooling capacity has reached 1,640,000 Refrigeration Tons (RT) during 2020 that covered various projects, such as Deira Waterfront, Blue Waters, Jumeirah Group, Jumeirah Beach Residence, Dubai International Financial Centre, Business Bay, Dubai Healthcare City, Jumeirah Lake Towers, Palm Jumeirah, Discovery Gardens, Ibn Battuta Mall, Dubai Design District and International Media Production Zone, amongst others.

"Empower has also saved a total of 1,312 MW electricity worth AED3.4 billion as of the end of 2020," Bin Shafar remarked.

On the sidelines of the press conference, Bin Shafar also said: "We are proud of our achievements in terms of increased number of district cooling plants that has reached 84 plants across Dubai, including the world's first unmanned district cooling plant in Jumeirah Village Circle project, along with having the largest district cooling network."

"Empower is committed towards efficient utilization of energy resources and supporting its customers and real estate developers, by providing high quality and eco-friendly district cooling services" he added. Bin Shafar also stated that Empower had reduced its fuel surcharge rates by approx. 25% effective 1st December 2020 in line with the initiative of Dubai’s Supreme Council of Energy.

"We will continue our endeavors in 2021 to increase the number of district cooling plants and expand our district cooling network across Dubai," he concluded.

Cooling Plants In 2020, Empower announced commissioning of its new advanced district cooling plant in Mirdif, Dubai, to provide better services to the residents of Ghoroob community with the efficient and environmentally friendly district cooling energy. The more advanced and economically designed plant (saving 30% of the total construction cost) is in line with the global environmental standards, and has a total capacity of 18,500 refrigeration tons (RT) with a provision for future expansion to serve other potential customers in the area.

During the year, Empower has awarded the construction contract worth AED 164 million to build its new district cooling plant in Za’abeel with a total cooling capacity of 50,000 refrigeration tons (RT) which will be interconnected with the company’s existing district cooling plant in DIFC to deliver a total cooling load of 112,000 RT.

Empower has also awarded contracts worth AED 190 million, for constructing it’s fourth district cooling plant in Business Bay, Dubai. The new plant will deliver 50,000 refrigeration tons (RT) which will increase the total cooling capacity of Business Bay project to 350,000 RT, the largest district cooling project in the world consisting of six district cooling plants upon completion.

Contracts and Networks Empower signed contracts with a total value of AED 1.39 billion with various companies, for the establishment of new district cooling plants, networks, Energy Transfer Stations (ETS), engineering consultancy, procurement of pipes and fittings, etc.

This included AED 255 million contracts to expand the district cooling network in Dubai Production City, Business Bay, Barsha Heights, Dubai Land Residence Complex, Dubai International Financial Center (DIFC) and DIAC projects. Further, contracts worth AED 90 million have also been awarded to establish ETS for various district cooling projects during the year; and the value of the Instrumentation and Control Systems upgrade contracts amounted to about AED 185 million.

Empower has also announced the expansion of its district cooling network in Jumeirah Village by interconnecting two areas, the Jumeirah Village Circle and Jumeirah Village Triangle, with a capacity of 260,000 refrigeration tons (RT), to be served from company’s six plants located in the area.

Empower provided district cooling services to the various iconic projects in 2020, including ’Ain Dubai’, the world’s tallest Ferris Wheel on the Bluewaters Island, The Avani Palm View Dubai Hotel & Suites, as well as three stations in the Route 2020 of Dubai Metro.

Emiratization In line with the growth in its operations, Empower's employee base also increased despite challenges resulting from the COVID-19 outbreak, and has reached more than 845, with UAE nationals accounting for 15% of the total. The percentage of Emiratization at Empower’s senior management as well as medium and administrative management levels have increased to 45% and 40% during the year 2020 respectively. Emiratisation and attracting qualified Emirati expertise has been at the core of Empower's employment strategy since its inception.

Key Sectors Empower provides district cooling services to Dubai's major sectors, including residential, commercial, hospitality, healthcare, educational institutions, shopping centers, etc.

Awards Empower has won several prestigious local and international awards over the years of its operations, including two gold awards in the 12th edition of the Annual Golden Bridge Business and Innovation Awards 2020, with total exceeding more than 50 awards.

At the end of the press conference, Bin Shafar added: "Empower has a clear vision and very efficient expansion strategies that are in line with the vision of our wise leadership for the transition towards sustainability. We are working tirelessly to expand our capacity, reduce costs and enhance energy efficiency by utilizing latest technologies."