Jasim Husain Thabet, CEO, Tabreed

Abu Dhabi, UAE, 31 January 2019: Tabreed achieved a seven per cent increase in net profit to AED 427.6 million and a three per cent increase in group revenue to AED 1,446.9 million in 2018, said Jasim Husain Thabet, Chief Executive Officer, during an event at the District Cooling utility’s headquarters in Masdar City, Abu Dhabi, on January 31. Thabet said the core chilled-water revenue also increased by three per cent to AED 1,361.3 million and that the EBITDA increased by 10% to AED 694.2 million. Based on the results, Thabet said, the company’s board of directors recommended a cash dividend for 2018 of 9.5 fils per share, up from 8 fils per share paid in 2018. Thabet said: “District Cooling is all about energy efficiency, compared to conventional cooling. It’s 50% more energy efficient in this part of the world, where cooling is 70% during peak power. We are providing District Cooling, which is essential to development and sustainability.”

Thabet also said that Tabreed successfully issued a USD 500 million, seven-year tenure sukok, which was 50% oversubscribed and received investment grade credit ratings from Moody’s and Fitch of Baa3 and BBB, respectively. Thabet said the company was able to improve its balance sheet in 2018, stressing that it is optimistic for the coming year.

Thabet said the positive figures the company has achieved were the result of strong operations and guidance at the beginning of the year. He said the company aims to have to have a total capacity of 65,000 tonnes of refrigeration (TR) by the end of 2019 and that, in 2018 alone, the company added 39,061 TR and three plants to its portfolio. “Our total capacity has increased,” he said. “Now, the total group capacity is 1,131,379 million TR across the GCC region. To give context that’s equivalent to providing 112 towers the size of Burj Khalifa with cooling. As a District Cooling company, our bread and butter is providing energy efficiency.” He added that the company contributed to saving of 1.97 billion kilowatt per hour across the GCC region, enough to power approximately 112,000 homes in the United Arab Emirates every year.

Thabet stressed that there has been a strong push by governments in the GCC region for sustainable energy solutions, and that as populations continue to grow, so will the demand for related infrastructure, such as schools, hospitals and new shopping centres. “With that in mind,” he said, “all these developments require world-class sustainable energy solutions and District Cooling is a must.”

Thabet said that in terms of operations, Tabreed has always been a regional District Cooling company, with strong presence in Saudi Arabia, Oman and other GCC region countries. He said that Tabreed views Saudi Arabia as a very important market, adding that the country offers a lot of opportunities and that the company looks forward to supporting the agenda of sustainability in projects driven by both private and public sectors, including those related to the Red Sea project. Thabet said the company currently handles significant projects in Saudi Arabia, from coast to coast, providing the Jabal Omar Development in Mecca as a prime example.

In Oman, Thabet said the company provided cooling to Knowledge Oasis and, most recently, to Al Araimi Mall. He added that the company is looking at opportunities in Egypt as well as in India.

Thabet said that while Tabreed is a regional District Cooling provider, it is also a true Emirati company, in a sense that its operations are spread out in the emirates of Abu Dhabi, Dubai, Sharjah, Fujairah, Ajman and Ras Al Khaimah, adding that the company continues to look at opportunities to support government initiatives across the United Arab Emirates. Tabreed, he said, currently has 63 plants in the country, highlighting the Warner Brothers World Abu Dhabi theme park, which opened on Yas Island In July 2018, as one of its significant achievements last year. In 2018, Tabreed also highlighted the acquisition of S&T Cool District Cooling company, a District Cooling provider on Reem Island in Abu Dhabi, from Aldar Properties.

Hannah Jo Uy is Assistant Editor at Climate Control Middle East magazine. She may be contacted at hannah@cpi-industry.com