Tabreed reports 7% rise in 2018 net profit on higher revenues
The district cooling company increased its connected capacity across the GCC
Tabreed, the district cooling company in which France's Engie and Mubadala Investment Company hold stakes, reported a 7 per cent rise in its full-year 2018 net profit on higher revenue and additional capacity across the region.
Net profit for the 12-month period ending December 31, reached Dh427.6 million, Tabreed said in a bourse filing to the Dubai Financial Market, where its shares are traded. Group revenue rose 3 per cent to Dh1.45 billion at the end of last year.
“I am optimistic about 2019 and beyond as economic diversification in the GCC and increasing urbanisation drives investment in high-density developments,” said Khaled Abdulla Al Qubaisi, Tabreed’s chairman. “This will leave Tabreed well positioned to provide cost-effective and environmentally friendly cooling solutions for our region.”
The company’s earnings before interest, tax, depreciation and amortization increased 10 per cent to Dh694.2m. However, share of associates and joint ventures dropped 30 per cent to Dh90.3m due to the impact of new accounting standards. The company’s board is recommending a cash dividend of 9.5 fils to the shareholders, it said.
Engie acquired a 40 per cent stake in the utility provider in 2017 from Mubadala for Dh2.85bn. The Abu Dhabi strategic firm retains 42 per cent of Tabreed.
During the year, Tabreed acquired 50 per cent of S&T Cool District Cooling Company, a major district cooling provider on Reem Island in Abu Dhabi, from Aldar Properties. It also sold part of its stake in its associate Saudi Tabreed to the IDB Infrastructure Fund II.
Tabreed increased its connected capacity across the Arabian Gulf markets by 39,061 refrigeration tonnes to over 1.1 million RT of cooling capacity. This includes Warner Bros World Abu Dhabi theme park, which opened on Yas Island in July 2018.
With more than 70 district cooling plants located throughout the region, Tabreed provides services to key developments in the region including projects such as Abu Dhabi’s Al Maryah Island, Sheikh Zayed Grand Mosque, Dubai Metro, Dubai Parks and Resorts, and the Jabal Omar Development in Saudi Arabia.
Updated: January 31, 2019 01:48 PM