Says chilled water business drives revenue growth

National Central Cooling Company PJSC, Tabreed, has released its first quarter consolidated financial results, the first to be announced since the completion of its recapitalisation programme on April 1, which it said demonstrated the company’s strong operating performance driven by continued growth in its core business of chilled water.

The company claimed that for the three months ended March 31, the total revenue increased by 23% to Dh245.6 million and that operating profit increased by 55% to Dh64.4 million over the same period in 2010. It however, added that the net profit fell by 25% to Dh32.8 million due to higher finance costs.

Tabreed revealed the following financial highlights:

Total revenue increased by 23% to Dh245.6 million, compared to Dh199.7 million in the same period in 2010

Gross profit increased by 21% to Dh101.9 million, compared to Dh84.4 million in the same period in 2010

Net profit decreased by 25% to Dh32.8 million, compared to Dh43.8 million in the same period in 2010

Chilled water revenue for the period was Dh183.6 million, a 32% increase over the same period in 2010

Basic and diluted earnings per share of Dh0.08 per share

Tabreed elaborated that its core business of chilled water produced revenues of Dh183.6 million, compared to Dh139.1 million in the same period in 2010, driven by additional connections. Its gross profit increased to Dh 86.7 million from Dh50.9 million in the same period the year before. No plants were added in Q1, but work continued on 13 plants under construction, including eight plants for the Dubai Metro Green Line, Tabreed added. The Company’s total installed cooling capacity remained to 541,525 (gross) TR across 49 plants, it said. 

Against the backdrop of the announcement, Khaled Al Qubaisi, Tabreed’s Managing Director, said: “With the completion of the recapitalisation programme, Tabreed has established the foundations of a strong utility business.  Tabreed delivers value, efficiency and dependability to its institutional customers and is positioned to build long-term returns for its stakeholders.  These results demonstrate the continuing improvements made by the management team, and we look forward to a successful year ahead as Tabreed meets the strong demand for cooling infrastructure in the region.”