Tabreed 9-month profits rise 21% to Dh202.3m

The National Central Cooling Company (Tabreed) today released its consolidated third-quarter (Q3) 2013 financial results.  New customer connections, improved operating efficiencies and lower finance costs continue to drive the company’s strong financial performance.

In its report, the company details its financial results for the nine months ended 30th September 2013: the net profit increased by 21 percent to Dh202.3 million. Core chilled water revenue increased by 4 percent to Dh775.9 million and core chilled water profit from operations increased by 4 per cent to Dh266.4 million.

In line with expectations, as the company continued to phase out the non-core businesses, group revenue declined by 2 percent to Dh826.5 million, EBITDA increased by 5 percent to Dh379.7 million and net finance costs decreased by 14 percent to Dh111 million.

With regards to operational highlights for the same period, 16,150 RT of customer connections added in the third quarter, group connected capacity across the GCC increased by 8.1 percent to reach 829,403 RT, connected capacity in the U.A.E. increased by 5.4 per cent to reach 635,224 RT and affiliate company, Saudi Tabreed, began providing operation and maintenance (O&M) support to the district cooling plant servicing the King Abdulla Financial District in Saudi Arabia.

Waleed Al Mokarrab Al Muhairi, Tabreed’s Chairman, said, "Tabreed’s strategy to drive growth through our core chilled water business continues to deliver strong results.  Looking ahead, we remain optimistic that chilled water demand will continue to increase across the region, and look forward to working closely with our clients to implement energy-efficient cooling solutions that enable our region’s sustainable development."

Jasim Husain Thabet, Tabreed’s Chief Executive Officer, added, "The combination of revenue growth in our chilled water business and lower financing costs resulted in a strong improvement in profit for the period. The commencement of O&M support to the King Abdullah Financial District in Saudi Arabia was a major operational milestone. Today, we deliver approximately 830,000 RT of critical district cooling services in five countries throughout the GCC, making us the region’s pre-eminent district cooling provider."

Tabreed currently has 66 plants across the GCC and provides its district cooling services to many of the region’s landmark projects, including the Sheikh Zayed Grand Mosque, Dubai Metro, World Trade Centre Abu Dhabi, Ferrari World Abu Dhabi, Yas Marina Circuit, the Pearl – Qatar, Bahrain Financial Harbour and the Jebal Omar Development Project in Mecca.

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