The National Central Cooling company, also known as Tabreed, reported a 4 per cent increase in its second-quarter profit on the back of higher revenue.
The total profit attributable to equity holders of the parent for the three-month period ending June 30 rose to Dh148 million ($40.29m), the company said in a statement to the Dubai Financial Market, where its shares trade. Revenue during the period jumped 23 per cent year-on-year to Dh511.4m.
“As Tabreed has remained focused on achieving its stated objectives, revenue has continued to grow, along with its portfolio of district cooling networks,” the company said.
“Recent additions include a fourth plant in Downtown Dubai, along with additional connections to our existing concession areas. Capacity has also increased in Bahrain and Oman.”
Tabreed, in which French utility Engie and Mubadala Investment Company own significant stakes, operates 87 district cooling plants across the Gulf, 74 of which are in its home market in the UAE. It operates five plants in Oman, three in Saudi Arabia and one in Bahrain, among others.
Net profit in the six months ending June 30 climbed more than 4 per cent to Dh233.5m as revenue grew 22 per cent to Dh869m.
“Tabreed’s portfolio continues to grow through strategic business development that is measured and carefully considered,” Khalid Al Marzooqi, Tabreed’s chief executive, said.
“In the past six months we have increased cooling capacity in three different countries, most notably with the addition of a fourth district cooling plant in Downtown Dubai, which forms part of Tabreed’s acquisition deal with Emaar in April last year.”
Tabreed bought a majority stake in Emaar Properties' Downtown Dubai district cooling business for Dh2.48 billion. The deal, financed through a corporate loan, gave the company an 80 per cent stake, with Emaar retaining the balance under a long-term partnership deal.
The company also signed an agreement with master developer Miral to provide district cooling services at SeaWorld Abu Dhabi marine life theme park on Yas Island earlier this year.
As part of the deal, Tabreed will connect the new SeaWorld Abu Dhabi development to its existing Yas Island district cooling scheme to deliver a cooling capacity of 7,500 refrigeration tonnes to the project.
It also bought two district cooling units on Saadiyat Island from Aldar Properties in a Dh963m deal last year.