Empower approves $116m dividend for latter half of 2022

Emirates Central Cooling Systems Corporation, better known as Empower, will pay a dividend of Dh425 million ($116 million) to its shareholders for the second half of last year.

Amounting to about 4.25 fils a share, the dividend was approved during the company’s general meeting on Wednesday, Empower told the Dubai Financial Market, where its shares are traded.

The dividend, equal to 42.5 per cent of the company’s paidup capital, will be distributed next month, the company said.

“Empower is moving forward with its expansion, extending the reach of its services and developing its unique business model that enabled it to become the world’s largest provider of eco-friendly district cooling services,” said its chairman Saeed Al Tayer.

The company was established by royal decree as a joint venture in 2003 to provide energy to Dubai’s property sector.

Last month, it reported an increase of about 7 per cent in its 2022 net profit as it consolidates its position in the UAE and explores opportunities in the region. Net profit for the 12 months to the end of December rose to Dh1 billion, from Dh935.8 million in 2021. Revenue for the reporting period was Dh2.79 billion, up from Dh2.46 billion at the end of 2021.

Empower, which started trading on the DFM in November, sold two billion shares through its initial public offering, or 20 per cent of its share capital.

The Dubai Electricity and Water Authority and Emirates Power Investment retained 56 per cent and 24 per cent of Empower’s existing share capital, respectively, after the listing.

Empower raised more than Dh2.6 billion from its offering, which drew strong demand from local, regional and international investors, and was more than 47 times oversubscribed.

The UAE Strategic Investment Fund, Shamal Holding and the Abu Dhabi Pension Fund were cornerstone investors in the IPO, with a total commitment of up to Dh335 million.

Empower expects growth to continue this year and is “determined to increase its market share within the country, driven by an innovative strategy and a unique and sustainable business model”, said its chief executive Ahmad bin Shafar.