Tabreed Q1 profit rises 22% to Dh58m

First quarter profits of National Central Cooling Company (Tabreed), an Abu Dhabi-based district cooling company, increased by 22 per cent to Dh58.2 million compared to Dh47.8 million in Q1 2013.

In a statement, the company said the increase in its profits was driven by the core chilled water business, with more than 16,000 Refrigerated Tonnes (RT) of new connections made in the first quarter of the year.

Waleed Al Mokarrab Al Muhairi, Chairman, said: “The company continues to focus on strengthening its core chilled water business and maximising the return on its existing assets.”

Tabreed shares were up half a per cent to Dh2.38 at 1.15pm on Monday at the Dubai Financial Market.

Core chilled water revenue to Dh208.2 million while core chilled water profit from operations increased to Dh76.6 million, both registering three per cent increase.

Group revenues rose 4 per cent to Dh227.2 million at the end of first quarter of 2014 compared to Dh218.6 million in Q1 2013. EBITDA increased to Dh112.8 million (Q1 2013: Dh110.4 million). Net finance costs decreased 15 per cent to Dh32.7 million.

The company said group connected capacity in the GCC increased two per cent to 855,900 RT while connected capacity in the UAE alone increased by 3 per cent to reach 652,900 RT.

Jasim Husain Thabet, Chief Executive Officer, said: “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 the 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 the Holy City of Mecca.
 

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