Tabreed rakes in US$279m in revenue, up 31%
Significant milestone reached in recapitalisation programme
National Central Cooling Company (Tabreed), the Abu Dhabi-based utility company, today released its full-year unaudited financial results for 2010. Total revenue increased by 31% to AED 1,023.7 million (approximately US$279 million) and net profit, excluding the non-cash impairment declared for 2009, increased by 147% to AED 146.3 million (approximately $40 million) over the same period in 2009.
The Company also announced today that its bank lenders have unanimously approved the principal terms of an agreement to refinance AED 2.63 billion ($716 million) of liabilities and to extend Tabreed a new AED 150 million ($41 million) revolving credit facility.
The approved refinancing will convert Tabreed’s existing short-term bilateral and syndicated bank debt facilities into a consolidated facility with an extended tenor and lower total cost of borrowing, giving Tabreed long-term flexibility to deliver its business plan.
Tabreed has also secured an additional AED 400 million ($109 million) in short-term financing from Mubadala Development Company PJSC, in the form of an amendment to the current AED 1.3 billion ($354 million) bridge loan. This bridge loan will provide Tabreed with funding while the company completes its recapitalisation programme.
Khaled Al Qubaisi, Tabreed’s managing director said: “Today’s announcement is significant not only because of the strong full-year unaudited results for 2010, but also because the approval of the terms of the refinancing by our bank lenders is a decisive step towards the successful recapitalisation of Tabreed. The Board and management of Tabreed are pleased to have reached this significant milestone and the Company continues to work hard with all stakeholders to close the recapitalisation programme.”
Sujit Parhar, Tabreed’s CEO, said: “The full-year unaudited results released today demonstrate a significant turnaround of the Company’s performance over the last 12 months. The management and staff improved operational performance by refocusing on the core chilled water business. This has resulted in improved overall profitability and has positioned the Company for growth given the region’s demand for cooling infrastructure.”
Thirteen plants and two plant expansions came online in 2010 adding 155,800 of gross capacity. This brings Tabreed’s gross total installed cooling capacity to 541,525 TR across 49 plants as of 31 December 2010.
Tabreed’s core business of chilled water produced revenues of AED 753.3 million ($205 million), an increase of 73% when compared to AED 435 million ($118 million) in the same period in 2009. This performance was driven by new plants and plant expansions coming online. Gross profit increased to AED 320.6 million ($87 million) from AED 165.8 million ($45 million) in the same period the year before.
The company’s contracting segment recorded revenues of AED 132.3 million ($36 million), a decrease of 26% when compared to AED 178.2 million ($49 million) over the same period in 2009, with gross profit of AED 31.1 million ($8 million) compared to AED 23.1 million ($6 million) in the 12 months of the previous year. The increase in gross profit was due to less uncertainty around costs to complete as projects reached completion. Tabreed’s wholly owned subsidiary, Gulf Energy Systems, was the biggest contributor to the results reflecting completion of several projects and progress on others including Sowwah Island.
Tabreed’s manufacturing segment reported revenues of AED 95.9 million ($26 million), a decrease of 34% when compared to AED 145.3 million ($40 million) in the same period in 2009, while gross profit fell to AED 28.2 million ($7.7 million) compared to AED 45.5 million ($12 million) in the same period of 2009. This decline was due to reducing order books and an increase in competition at Tabreed’s 60% owned subsidiary, Emirates Pre-insulated Pipes Industries.
Tabreed’s services segment, which is involved in the design and supervision of building electrical and mechanical works, reported revenues of AED 76.3 million ($21 million), a decrease of 9% when compared to AED 83.7 million ($23 million) in the same period in 2009, while gross profit decreased to AED 48.4 million ($13 million) compared to AED 51.6 million ($14 million) in the same period in 2009. The change reflects the regional real estate slowdown that affected the services division, which includes Ian Banham & Associates (Tabreed has a 70% shareholding), l2l (60% shareholding) and Cooltech (100% shareholding).