Tabreed posts 3% rise in first half profit
UAE-based district cooling company sees earnings rise as it adds connections in Oman, KSA, UAE and Qatar.
National Central Cooling Company (Tabreed) continues to benefit from lower finance costs and further growth across the UAE and GCC, with over 13,700 refrigerated tons (RT) of new connections made in the first half of the year.
The Abu Dhabi-based district cooling company booked first half net profit attributable to the parent of AED 153.4mn ($41.8mn), up 3% on the same period a year earlier. Group revenue increased by 6% to AED 555.3mn from AED 526.3mn.
Tabreed renewed a district cooling agreement with a major customer in the first quarter of the year. The contract has a duration of 30 years and sets the framework for additional connections to future projects.
Total group connected capacity across the GCC reached 953,000 RT, with new customer connections added in Oman (5,000 RT), Saudi Arabia (4,800 RT), the UAE (2,400 RT) and 1,500 RT in Qatar
Waleed Al Mokarrab Al Muhairi, Tabreed’s Chairman, said: “Tabreed’s consistently strong results are a testament to the company’s stable utility infrastructure business model, which is anchored in a robust core chilled water segment.
“As the leading district cooling provider in the GCC, Tabreed has been steadily strengthening its footprint in its key markets across the region, with almost 14,000 RT of new connections across the GCC taking total connected capacity to almost 1 million RT.”
Jasim Husain Thabet, Tabreed’s CEO, added: “We remain committed to returning consistent and positive financial results, which is exemplified in our first half earnings, with net profits increasing by 3% over the same period last year, reaching AED 153.4 million.
“The first half of the year also saw our shareholders approve a 5 fils dividend and the buyback of 28% of the bonds held by Mubadala. The buyback will increase earnings per share and reduce annual financing costs.”
Tabreed has 69 district cooling plants across the GCC and provides its services to many of the region’s critical projects including all the developments on Abu Dhabi’s Al Maryah Island, home to Cleveland Clinic Abu Dhabi and Galleria, and all the developments on Yas Island such as Ferrari World, Yas Marina Circuit and Yas Mall, in addition to other national and regional landmarks including Sheikh Zayed Grand Mosque, Dubai Metro, the Pearl – Qatar, and the Jabal Omar Development Project in the Holy City of Mecca.