Cooling Firm Powers Ahead with 2.5% Profit Growth Amid Strategic Expansion

First-half earnings reach 276 million dirhams as company eyes major capacity increases

The National Central Reading Company, known as “cooling,” has announced robust financial performance for the first half of 2025, reporting revenues of 1.11 billion dirhams and net profits of 276 million dirhams. This growth trajectory is attributed to sustained strategic momentum, enhanced profit margins, rigorous cost management, and enduring high demand for its services.

Capacity Surges with New Acquisitions and Projects

Operational capacity has seen a significant boost, with 41.6 thousand tons of cooling added in the first half of 2025, nearly doubling the capacity added throughout the previous year. The company’s total contractual capacity now stands at 1.37 million tons.

Further strengthening its market position, “cooling” initiated the acquisition of Pal Cooling from the Malagli group in June through a joint venture. This deal, pending regulatory approval, is set to add over 182 thousand tons of cooling capacity, marking a 13% increase and bringing the total operational capacity to 1.55 million tons.

The acquisition includes eight concessions with substantial growth potential, expected to reach 600 thousand tons of cooling capacity. It will also expand the company’s long-term concession base and customer network, including a new partnership with Modon, securing over 1 million tons of future operating capacity.

In parallel, “cooling” commissioned three new stations in local and regional markets during the first half, contributing an additional 28.6 thousand tons of cooling capacity. These facilities are designed to meet escalating demand in rapidly developing urban and industrial areas.

A significant strategic move was the exclusive concession agreement with Dubai Holding for Investments to provide cooling services for the “Palm Jebel Ali” project in Dubai. This agreement, for 250 thousand tons of cooling, represents the largest new project in the company’s history.

Cumulatively, the Pal Cooling acquisition and the Palm Jebel Ali concession are poised to elevate “cooling’s” total operational capacity to approximately 2.6 million tons, underscoring the company’s commitment to long-term, capital-efficient growth.

Shareholder Value and Future Outlook

Reflecting its strong financial standing and cash generation capabilities, the Board of Directors has proposed an interim dividend of 6.5 fils per share for the first half of 2025. This distribution, equivalent to 67% of the net profit, marks the first interim dividend in the company’s history and signals strong confidence in its future prospects.

The dividend distribution is contingent on shareholder approval at the upcoming general assembly meeting in September 2025.

“Standard additions to operational energy are enhanced during the first half, after completing pivotal deals such as the “Palm Jebel Ali” project and the strategic acquisition of “Pal Colling”, our position as a regional operating market for markets and a reliable infrastructure partner, who has a clear vision to achieve value.”

—Dr. Bakhit Al-Kathiri, Chairman of the Board of Reading Company

Dr. Bakhit Al-Kathiri, Chairman of the Board, commented on the results, highlighting the company’s ability to expand and achieve strong financial performance while advancing its long-term growth agenda. He emphasized the focus on capital discipline and delivering sustainable returns.

“The signing of the acquisition deal on “Pal Colang” is not only a major step for the attendance of a “cooling” in Abu Dhabi, but also an important station in the path of our long-term development, as we are a fundamental partner for the development of infrastructure in cities, sectors and digital systems throughout the region.”

—Khaled Al-Marzouki, CEO of Tabred Company

Khaled Al-Marzouki, CEO of Tabred Company, added that the company is more than a cooling service provider, developing high-performance, future-ready infrastructure. The clear vision for operational capabilities, totaling 2.6 million tons, centers on enhancing capital efficiency, operational excellence, and exploring new markets and sectors where cooling services are vital for development.

The company’s performance aligns with broader trends in infrastructure development. For instance, the global district cooling market is projected to reach $59.1 billion by 2030, growing at a compound annual growth rate of 7.6% (Fortune Business Insights 2024), driven by increasing urbanization and environmental consciousness.

Through strategic expansions, new projects, and long-term concessions, “cooling” is solidifying its regional presence and is well-positioned for continued sustainable growth through the remainder of 2025 and beyond.