Tabreed announces 34% hike in net profits
District cooling firm closes 2011 with AED182m in net profit
National Central Cooling Company PJSC (Tabreed) the Abu Dhabi-based district cooling utility company, has announced a 34 per cent increase in net profits, up to AED182 million in its 2011 unaudited full year financial results.
The company has delivered a strong operating performance driven by its core chilled water business, and new plants and customer connections, in addition to improved organisational efficiencies, also contributed to the increase in profits.
Waleed Al Mokarrab Al Muhairi, Tabreed’s Chairman, said: “Our full year performance, in particular our revenue growth and significantly increased profitability, demonstrates the success of our strategy of focusing on the chilled water business, improving operational efficiencies and applying stricter cost discipline across the business. Our strategy will remain constant in the year ahead as we complete our build-out program and build upon the notable achievements of 2011.
Our stakeholders recognise district cooling as a vital utility because of the energy efficient, cost effective and reliable cooling it provides. As the partner of choice for leading institutions, Tabreed will capitalise on future demand for cooling that will be driven by the continued investment in and diversification of the Abu Dhabi and other regional economies.”
Sujit S. Parhar, Tabreed’s CEO, said: “As these results demonstrate, Tabreed has a solid fundamental business model driven by its core chilled water business, underpinned by its strict cost discipline and continuously improving organisational efficiencies.
During 2011, we successfully completed the construction of 11 plants, eight for the Dubai Metro Green Line, which has increased our total connected capacity in the UAE to 555,181 RT. With 95 per cent of our total capacity contracted through long-term contracts with customers, Tabreed is now well positioned to continue to deliver sustainable and recurring revenues and profits.”
TABREED – 2011 IN NUMBERS
• Group revenue for the year increased by nine per cent to AED 1,114.6 million (2010: AED 1,023.7 million)
• Net profit increased by 34 per cent to AED 182.7 million (2010: AED 136.8 million)
• Chilled water revenue for the year increased by 25 per cent to AED 943.8 million (2010: AED 753.3 million), while chilled water profit increased 37 per cent to AED 274.4 million (2010: AED 200.3 million)
• Debt to equity ratio decreased to 0.93 (2010: 3.15)
• EBITDA of AED 434.7 million, a 18 per cent increase (2010: AED 368.2 million)
• On 1 April 2011, Tabreed successfully completed its recapitalisation program, putting in place a stable capital structure and enabling the company to settle its 06 Sukuk in full upon maturity