Tabreed Q2 profit up 32%

Lower finance costs and better chilled water business boost profits

UAE utility firm Tabreed on Wednesday reported a 32 per cent rise in second quarter net profit, driven by its core chilled water business and lower finance costs.

The Dubai-listed firm said quarterly profit rose to Dh57.9 million ($15.7 million) from Dh43.8 million a year ago.

Total revenue for the second quarter was Dh296.6 million, up 3 per cent compared to Dh286.6 million in the prior-year period.

Tabreed posted a net profit of Dh94.7 million for the first half of the year, up 25 per cent.

It said net finance costs decreased by 33 per cent to Dh87.2 million in the six-month period due to the completion of the recapitalisation program in 2011. Revenue from chilled water, Tabreed's core business, rose 5 percent.

Formally known as National Cooling Company, Tabreed is among several Gulf firms which has had to restructure its debt after the property market boom ended abruptly in 2009.

In March 2011, the industrial cooling firm secured an extra Dh3.1 billion funding from state-owned fund Mubadala Development Co, helping it to tackle its debt pile.

The firm currently has 59 plants in the UAE and six plants across the Gulf region.

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