News Column

Tabreed's profit soars 22% on chilled water

April 28, 2014

National Central Cooling Company (Tabreed), the leading Abu Dhabi-based district cooling utility infrastructure company, on Monday released its 2014 first quarter consolidated financial results.

The company's strong performance continues to be driven by the core chilled water business, with more than 16,000 Refrigerated Ton (RT) of new connections made in the first quarter of the year.

Net profit attributable to the parent increased by 22 per cent to Dh58.2 million, in the three months ending March 31, 2014. Core chilled water revenue increased by three per cent to Dh208.2 million over the Dh202.7 million recorded in Q1, 2013. Core chilled water profit from operations increased by three per cent to Dh76.6 million; while group revenue increased by four per cent to Dh227.2 million.

EBITDA increased to Dh112.8 million, and net finance costs decreased by 15 per cent to Dh32.7 million. Group connected capacity in the GCC increased by two per cent to 855,900RT, while connected capacity in the UAE alone increased by three per cent to reach 652,900RT.

Waleed Al Mokarrab Al Muhairi, Tabreed's chairman, said: "The company continues to focus on strengthening its core chilled water business and maximizing the return on its existing assets. We are pleased that Tabreed has cemented its position as a leading regional utility infrastructure company, delivering consistent returns to its stakeholders while playing a critical role in enabling the sustainable development of the region."

Jasim Husain Thabet, Tabreed's chief executive officer, added: "Our strong performance in Q1 resulted from our ability to connect new clients to existing plants, primarily in the UAE. As economies in the UAE and the region continue to expand, we are witnessing increasing interest in district cooling driven primarily by economic, environmental and energy benefits it delivers to both customers and governments alike."

Tabreed currently has 66 district cooling plants across the GCC and provides its cooling services to many of the region's landmark projects including the Sheikh Zayed Grand Mosque, Dubai Metro, World Trade Center Abu Dhabi, Ferrari World Abu Dhabi, Yas Marina Circuit, the Pearl Qatar, and the Jabal Omar Development Project in Makkah.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Khaleej Times (United Arab Emirates)