Tabreed, the district cooling company in which France's Engie and Mubadala Investment Company hold stakes, posted a three per cent increase in first-quarter profit as it added new customers.
Net profit attributable to shareholders for the three months to March 31 rose to Dh80 million, Tabreed said on Thursday, in a filing to the Dubai Financial Market where its shares are traded. First quarter revenues rose 8 per cent to Dh 296.8m year-on-year.
The rise in net profit and revenues are "a result of new customer connections", Bader Al Lamki, Tabreed’s newly appointed chief executive, said. "This strong platform puts us in a good position for the remainder of 2019 and beyond.”
Tabreed's earnings before interest, tax, depreciation and amortisation (Ebitda) increased 15 per cent to Dh170.2m in the first quarter. However, the share of results from associates and joint ventures decreased by 29 per cent to Dh 15.5m, it said.
During the quarter, Tabreed signed a 30-year concession agreement with the new Andhra Pradesh Capital City in India, in a "significant step" to penetrate one of the world’s biggest and fastest growing markets, it said.
Tabreed increased its connected capacity across the Arabian Gulf markets to more than 1.13 million refrigeration tonnes.
"Looking to the future, continued economic diversification in the GCC, its expanding population, and increasing urbanisation will drive further investment in high-density developments, and district cooling is a core component of such investment," Khaled Abdulla Al Qubaisi, Tabreed’s chairman, said.
The company appointed Mr Al Lamki in April to help Tabreed “achieve its full growth potential".
Engie acquired a 40 per cent stake in the utility provider in 2017 from Mubadala for Dh2.85bn. The Abu Dhabi strategic investment firm retains 42 per cent of Tabreed.
With 74 district cooling plants located throughout the region, Tabreed currently delivers over 1.1 million refrigeration tonnes to key developments in the region, including infrastructure projects such as Abu Dhabi’s Al Maryah Island, Yas Island, Sheikh Zayed Grand Mosque, Dubai Metro, Dubai Parks and Resorts, and the Jabal Omar Development in Mecca.
