The company’s market leading position to meet rising cooling needs is boosting performance
Tabreed first half net profit jumps 20 per cent on new capacity and connections
The National Central Cooling Company, also known as Tabreed, said net profit for the first half of the year increased 20 per cent on the back of new capacity and connections added across the GCC.
Net profit advanced to Dh192.7 million in the first six months of the year compared to Dh160.5m in the same period last year. Group revenue increased by 10 per cent to Dh639.2m in the first half compared to Dh578.6m in the same period last year. Core chilled water revenue gained 17 per cent to Dh602.3 million in the first half compared to Dh516 m in the same period last year.
Shares of Tabreed rose as much as 2.42 per cent before closing 0.48 per cent higher at Dh2.08 in Abu Dhabi.
“Tabreed is going from strength to strength with a growing presence across the GCC region, where we are proud to cool landmark projects and critical infrastructure developments," said Jasim Husain Thabet, the company's chief executive. "This is essential to driving business results and economic development."
Total group connected capacity across the GCC increased to 1,084,451 refrigerated tonnes with 36,040 refrigerated tonnes of new customer connections added in the first half of the year. Of that, 22,863 refrigerated tonnes were added in the UAE, 3,000 refrigerated tonnes were added in Bahrain, and 10,177 refrigerated tonnes was added in other regions.
The company noted that among its operational highlights that it managed through greater efficiency to save 595 million kilowatt hours of electricity across the GCC. That prevented the release of nearly 297,500 tons of carbon dioxide, the equivalent of eliminating the emissions from 59,500 vehicles annually.
Tabreed recently announced that the French global energy leader Engie agreed to purchase 40 per cent of Tabreed from the Abu Dhabi strategic investment firm Mubadala Investment Company, through the conversion of Mubadala's Mandatory Convertible Bonds and transfer of 1.086 billion shares to Engie.
The US$775m agreement is to be completed in the third quarter of 2017 pending regulatory approval.
“The planned investment in Tabreed by global energy leader ENGIE is further testament to Tabreed’s financial strength and leading market position," Mr. Thabet said.
"Tabreed Board approval of the necessary increase in share capital, and conversion of the MCBs, is a significant step and we look forward to welcoming ENGIE as a major shareholder of Tabreed. This brings us one step closer to the successful completion of the transaction, expected in the third quarter of 2017."