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Abu Dhabi, UAESaturday 15 December 2018

Tabreed 2017 profit jumps 9% on capacity boost 

Rise in income from core chilled water operations helped profitability

Tabreed has reported a 9 per cent increase in its full year 2017 net income. Jumana El Heloueh / Reuters
Tabreed has reported a 9 per cent increase in its full year 2017 net income. Jumana El Heloueh / Reuters

The National Central Cooling Company (Tabreed), which counts Abu Dhabi’s Mubadala Investment Company as its shareholder, reported a 9 per cent rise in its full-year 2017 profit as increased capacity and higher income from core chilled water operations boosted profitability.

Net profit attributable to the parent at the end of last year advanced to Dh400.1 million, up from Dh367.4m recorded a year earlier, the company said in a statement to Dubai Financial Market (DFM), where its shares are traded. Group revenues rose by 9 per cent to Dh1.4 billion from Dh1.27bn, while the company’s profit from core chilled water operations rose 10 per cent to Dh427.2m, up from Dh387.3m at the end of 2016, it said.

“Tabreed continues on its solid growth path in 2017,” Jasim Thabet, company’s chief executive said. “As we look forward to 2018 and beyond, we pursue our commitment to support the region in meeting its growing cooling needs with Tabreed’s reliable and cost-efficient solutions.”

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Tabreed has been a technology leader in the region for about two decades, carrying out projects in Abu Dhabi’s Yas Island, the Sheikh Zayed Grand Mosque and in Dubai, on the Metro and Dubai Parks and Resorts developments as well as in Makkah at the Jabal Omar project. Tabreed supplies chilled water, which is used for air conditioning or converts traditional individual cooling systems to a centralised system.

Its biggest operational highlight last year was Mubadala, selling 40 per cent stake to French Engie for Dh2.85bn the district cooling company explores new markets. Mubadala gains about Dh1bn on top of maintaining its single largest shareholder status in Tabreed, with a 42 per cent holding. Engie will be the second-largest shareholder, Mubadala said in a June statement.

The deal with Engie will “support the company in further capturing the growing regional district cooling market opportunities, aligned with the rapid urbanisation witnessed across the GCC region,” Tabreed chairman Khaled Al Qubaisi said.

Tabreed said total capacity last year reached 1.09 refrigerated tonnes. It added 43,900 of refrigerated tonnes of new customer connections in the last 12-month period with 24,300 refrigerated tonnes of capacity coming on stream in the UAE, 3,000 in Bahrain and 16,600 across its operations in the other GCC markets.

The company said over 1.53 billion kilowatt hours of electricity was saved across the GCC through its operations - enough energy to power approximately 51,000 homes every year. This has prevented the release of almost 768,000 tons of carbon dioxide, the equivalent of eliminating the emissions of 153,600 vehicles annually, it said.