Abu Dhabi, UAEMonday 17 February 2020

Tabreed reports 11% rise in profits and maintains expansion plans, CEO says

The company plans to widen its presence across the GCC, Egypt and India through acquisitions or new projects

Tabreed's sustainable cooling plant on Yas Island. The company reported a 11 per cent increase in its full year profit. Victor Besa / The National
Tabreed's sustainable cooling plant on Yas Island. The company reported a 11 per cent increase in its full year profit. Victor Besa / The National

Tabreed, in which France's Engie and Abu Dhabi's Mubadala Investment Company hold stakes, is looking at new opportunities in the district cooling business, to boost growth across the GCC, India and Egypt, either through acquisitions or greenfield projects, its chief executive said.

"We have the flexibility and the appetite," Bader Al Lamki told The National, without providing further details. "We are optimistic about 2020 and should continue with the same trajectory of growth, trying to strengthen our position in the existing markets but also explore new markets."

On Tuesday the company reported an 11 per cent increase in profit for 2019, as revenues climbed on the back of new customers.

Net profit attributable to shareholders, for the period ending December 31, 2019, rose to Dh472.5 million, Tabreed said on Tuesday in a filing to the Dubai Financial Market, where its shares trade. Revenues for the reporting period climbed 5 per cent year-on-year to Dh1.5 billion.

“Our financial and operational achievements ... demonstrates our exceptional strength within the market and continued growth and innovation,” said Khaled Abdulla Al Qubaisi, Tabreed’s chairman. “For 2020 and beyond, I am confident about our ability to further contribute to the region’s sustainable development as urbanisation continues to drive investment into high-density developments.”

Tabreed’s board recommended a cash dividend for 2019 of 10.5 fils per share, up 11 per cent from the previous year.

The company has 80 plants and investments in six countries. Its total group connected capacity across the GCC increased to 1,182,715 Refrigeration Tons (RT) last year with the addition of new customer connections, according to the company. Six new plants also became fully operational during the period.

Impairment provisions for trade receivables in 2019 edged up to Dh13.5m, from Dh13.1m during the previous year. Administrative and other expenses rose 8.45 per cent year-on-year to Dh206.6m and finance costs increased 11 per cent to Dh180.7m.

Last year Tabreed signed its first cooling concession agreement in India, increased its stake in Saudi Arabia-based district cooling firm Saudi Tabreed to 28 per cent and acquired a 69,000 RT concession in Masdar City. It also commissioned district cooling plants at King Khaled International Airport in Riyadh and the Mall of Muscat in Oman.

Updated: January 28, 2020 04:53 PM

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