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05 March 2024

Tabreed profit more than doubles

By Reuters

UAE utility firm Tabreed's fourth-quarter net profit more than doubled, backed by strong performance at its core chilled water business and an increase in total capacity.

Dubai-listed Tabreed, which received funding from state-owned fund Mubadala to restructure debt last year, saw quarterly profit rise to Dh52.9 million ($14.40 million) from Dh21.1m year-ago, according to Reuters calculations.

Reuters calculated the fourth quarter profit from previous financial statements. The company reported a net profit of Dh129.8m for the nine-month period ending September 30, 2011.

Tabreed's full-year net profit rose 34 per cent to Dh182.7m, the company said in a statement. Group revenues rose 9 per cent to Dh1.1 billion, with its main chilled water division accounting for Dh943.8m of the overall revenues.

"Our strategy will remain constant in the year ahead as we complete our build-out program and build upon the notable achievements of 2011," Waleed Al Mokarrab Al Muhairi, Tabreed's chairman, said in the statement.

The company said it added 11 plants during 2011 and an additional 8 per cent in overall capacity.

Tabreed is among several Gulf companies which has had to restructure its debt after an economic boom, fuelled by record-high oil prices and easy credit, ended abruptly and caused a property market crash.

In March 2011, Tabreed secured an extra Dh3.1bn funding from state fund Mubadala, helping it to tackle its debt pile.

Its debt-to-equity ratio stood at 0.93 per cent at the end of 2011, compared to 3.15 per cent at the end of the previous year.

Mubadala currently owns 27.3 per cent of Tabreed.

Tabreed shares have risen 9.5 per cent year-to-date. They have fallen 60 per cent in the last year, according to Reuters data.