District cooling company profit boosted by income from chilled water operations
Tabreed posts 3.1% rise in first quarter profit on higher revenues
National Central Cooling Company, the UAE-based district cooling utility company also known as Tabreed, posted a 3.1 per cent rise in first quarter profit as revenues increased.
Net profit attributable to shareholders increased to Dh77.7 million compared to Dh75.4m in the same period last year. Revenue rose 2 per cent to Dh274.4m versus Dh270.2m, the company said. Of that, core chilled water revenue advanced 1.4 per cent to Dh258.7m compared to Dh255.2m in the corresponding period last year.
“This is another strong set of results, further reinforcing the company’s leading position and the strength of its business model,” said Khaled Abdulla Al Qubaisi, Tabreed’s chairman.
“Our core chilled water business is the fulcrum of this model and continues to support the delivery of stable shareholder returns, which remains our top priority. We are confident of continuing to deliver growth as we further expand our operations and look forward to reporting progress through the current financial year.”
Shares of Tabreed rose 1.14 per cent to Dh1.77 at the close of trade.
During the quarter, Tabreed acquired 50 per cent of S&T Cool District Company on Reem Island in Abu Dhabi to become the sole owner of the utility firm. The plant has connected capacity of over 32,000 refrigeration tonnes (RT), taking the company’s total capacity across the GCC to 1,093,818 RT.
“We are very pleased to demonstrate once again that our unique cooling solutions are playing their part in the country’s efforts to achieve energy sustainability,” said Jasim Husain Thabet, the firm’s chief executive officer.
“Becoming the sole owner of S&T was also an important step in our long-term growth plan. We continue to explore ways of achieving greater efficiencies and developing innovative ways of reducing energy consumption and our pilot project with Masdar Institute of Science and Technology has proved valuable in this regard. We remain alert to all opportunities that can add value to our own business and also enhance our customers.”