Tabreed H1 profit surges 20pc to $52.4m

The National Central Cooling Company (Tabreed), a leading district cooling utility company, has posted a net profit of Dh192.7 million ($52.4 million) for the first half (H1) of the year, as against Dh160.5 million in H1 2016, marking an increase of 20 per cent. The company continues to deliver solid performance and growth driven by its core chilled water business with new capacity and connections added across the GCC, reported Wam, the Emirates official news agency. The company also announced good progress towards completing the transaction to introduce ENGIE as a new major shareholder of Tabreed. Earnings per share increased by 20 per cent to 7.1 fils compared to H1 2016 of 5.9 fils. Group revenue increased by 10 per cent to Dh639.2 million while core chilled water revenue increased by 17 per cent to Dh602.3 million. EBITDA increased by 12 per cent to Dh308.0 million and share of results of associates and joint ventures increased by 29 per cent to Dh62.4 million. The report went on to detail the operational highlights for the six months ended 30th June 2017, stating that total group connected capacity across the GCC increased to 1,084,451 refrigeration tons (RT), with 36,040 RT of new customer connections added in the first half of the year, broken down as 22,863 RT in the United Arab Emirates, 3,000 RT in Bahrain and 10,177 RT in other regions. A total of 595 million kilowatt hours of electricity was saved across the GCC, enough energy to power approximately 20,000 homes every year, which in turn led to the prevention of the release of almost 297,500 tons of carbon dioxide, the equivalent of eliminating the emissions of 59,500 vehicles annually In other developments, the company recently announced that global energy leader ENGIE will purchase 40 per cent of Tabreed from Mubadala through the conversion of Mubadala’s Mandatory Convertible Bonds, MCBs, and transfer of 1.086 billion shares to ENGIE. Further to that announcement, at their meeting on 26th July, Tabreed’s Board of Directors approved the necessary increase in Tabreed’s share capital and conversion of the MCBs to shares. The transaction is expected to be completed in the third quarter of 2017, once the required regulatory approvals are obtained. Khaled Abdulla Al Qubaisi, chairman, said: "Tabreed has earned a leading position in district cooling with a clear vision to deliver consistent and sustainable results to investors and shareholders. This is reflected in Tabreed’s robust performance in the first half of 2017 with a net profit increase of 20 per cent to Dh192.7 million. Its sound business model and growing customer and partner confidence is also reflected in the recent announcement of a major investment in Tabreed by global energy leader ENGIE, who will harness their long-standing experience to support Tabreed’s growth strategy and reinforce its reputation as a leading regional utility offering best in-class solutions and high quality long-term services." Jasim Husain Thabet, Tabreed’s chief executive officer, said: "Tabreed is going from strength to strength with a growing presence across the GCC region, where we are proud to cool landmark projects and critical infrastructure developments. This is essential to driving business results and economic development. Profits from our associates and joint ventures have increased by 29 per cent to Dh62.4 million." "The planned investment in Tabreed by global energy leader ENGIE is further testament to Tabreed’s financial strength and leading market position. Tabreed Board approval of the necessary increase in share capital, and conversion of the MCBs, is a significant step and we look forward to welcoming ENGIE as a major shareholder of Tabreed. This brings us one step closer to the successful completion of the transaction, expected in the third quarter of 2017. "As we look forward, our focus will continue to be on delivering high quality and advanced solutions and services to meet the region’s rising cooling needs, where we are well positioned to capture growth opportunities,"