Tabreed posts $45.6mn in profits YTD
Utility company sees its core chilled water business continue to deliver strong financial results
Tabreed has posted a 29% increase in its profit figures from 2011.
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National Central Cooling Company (Tabreed), the Abu Dhabi based utility company, announced on Wednesday that its net profit increased by 29% to $45.6mn (YTD 2012) on the back of its chilled water operations and cost discipline.
The figure was up from the $35.3mn recorded during the same time period in 2011, the company said, adding that it had increased its customer connections by nearly 18,000RT in the third quarter of this year.
“Tabreed’s strategy – to grow its core chilled water business – continues to deliver strong financial results. I am pleased with our performance to date and expect us to finish the year strongly. Tabreed remains in a strong position to capitalise on regional demand for district cooling and is focused on creating sustainable value for all its stakeholders,” said Waleed Al Mokarrab Al Muhairi, chairman.
Group revenue has remained unchanged at $229.26mn, which was in line with expectations as Tabreed looked to phase out its non-core value chain business.
Chilled water revenue increased by 5% to $203.5mn, up from $193.7mn. Profit from chilled water operations increased by 21% to $69.6mn from $57.7m as the company generated further value from its economies of scale and enhanced efficiency.
“[Our] robust performance reflects our strong business fundamentals. Increased customer connections, coupled with improved efficiencies in the chilled water business and a decline in finance costs drove net profit up 29% during the period,” said Jasim Thabet, Tabreed’s CEO.
“Since Q3 2011, Tabreed has added 32,000RT in customer connections, bringing its total customer connections in the GCC to 745,025RT and solidifying its position as the partner of choice for leading private and government institutions in the region,” he added.
Tabreed currently has 59 plants in the UAE. 52 of these are wholly owned and operated by the company while seven are operated through affiliates and subsidiaries. It also has six plants across the GCC, in Bahrain, Oman, Qatar and Saudi Arabia. These are also operated through affiliates and subsidiaries.
