UAE- Empower plans Dh500m loans for future projects 

(MENAFN - Khaleej Times) Emirates Central Cooling Systems Corporation, known as Empower, plans to take Dh500 million in new bank loans to fund its future projects, chief executive officer Ahmed Bin Shafar said.

Dubai's leading district cooling company's funding options included, internal cash generated from operations, medium to long term funding from banks and financial institutions and shareholders equity contributions.

The company's outstanding loan liability is Dh570 million and the next debt maturities will be in June and December this year.

"We did not restructure our loan and paid Dh370 million last year and we are in good shape to pay Dh150 million this year on maturity," Bin Shafar told reporters at a news conference on Tuesday.

The company is committed to pay loans, he said, adding: "We will be able to obtain Dh500 million for our projects." The new loan deal is expected to be signed with banks within two months, he added.
Profit results

Empower on Tuesday declared its 2011 fiscal year profit and said it recorded a net profit of Dh162 million for fiscal year ended December 2011, showing a 25 per cent increase over 2010. The company's total revenues reached Dh670 million, an increase of 40 per cent over the previous year.

"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 said.

He added that Empower adopted a clear strategy for 2011, an extension of the company's strategy in previous years. This strategy revolved round creating cooling capacities based on the actual demand for district cooling services. The company also increased its personnel by 12 per cent 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.

Empower stands at the forefront of district cooling industry in the region. The company has the right caliber and world class infrastructure to lead this industry in the Middle East. Empower achieved a remarkable increase of 12 per cent in its cooling capacity, with over 370,000 refrigeration tonnes in 2011.

Talking about the district cooling industry in the UAE as well as the competition in the market, he said that challenges facing the development of the industry in the UAE include lack of visibility to project development time-lines and robust strategy for capacity creation in many of the district cooling companies which has led them to financial difficulties. Empower, however, continued to grow, as demonstrated by its growth in revenues over 40 per cent in 2011.

Bin Shafar highlighted the advanced plant and network infrastructure of Empower as well as the skill sets and experience of its personnel, though the company is just nine years old.

Bin Shafar said the Gulf district cooling industry is growing at the rate of 15 to 20 per cent and the biggest obstacle in the way of its progress was the absence of long-term planning among the companies working in the district cooling 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 environment-friendly cooling technologies.