H1 2014 net profit increases 17% to AED 149 Million

National Central Cooling Company (Tabreed), releasing its 2014 first half consolidated financial results, has announced posting a 17% net profit increase in its H1 2014. It has also revealed an increase in customer connections by 87,700 TR in the first half of the year.

The company gave the following details:

Financial highlights – six months ended June 30, 2014:

• Net profit attributable to the parent increased by 17% to AED 148.6 million (H1 2013: AED 127.2 million)
• Core chilled water revenue increased by four per cent to AED 483.1 million (H1 2013: AED 464.8 million)
• Core chilled water profit from operations increased by four per cent to AED 172.8 million (H1 2013: AED 166.4 million)
• Group revenue increased by six per cent to AED 526.3 million (H1 2013: AED 497.2 million)
• EBITDA increased by five per cent to AED 259.9 million (H1 2013: AED 246.5 million)

Operational highlights – six months ended June 30, 2014:

• Tabreed-MIP consortium acquired the 80,000 TR Al Maryah Island District Cooling plant (see detailed story, below) in a transaction valued at AED 1.05 billion
• Customer connections increased by 87,700 TR
• Expanded affiliate company S&T Cool’s Reem Island plant by 17,000 TR to just over 30,000 TR
• Group connected capacity in the GCC increased by 10% to 926,100 TR

Commenting on the company’s positive financial outlook, Waleed Al Mokarrab Al Muhairi, Tabreed’s Chairman, said: “In addition to a strong financial performance, Tabreed reached several important operational milestones in the first half of 2014, underlined by the renewed master services agreement signed with the United Arab Emirates Armed Forces, which is valued at AED 6 billion over the next 20 years, as well as our expanding regional footprint.”

Jasim Husain Thabet, Tabreed’s CEO, added, “During the first half of 2014, we successfully leveraged our economies of scale to connect new customers to our plants, with just over 87,000 TR connected during this period.