Tabreed’s first-quarter profit rises on higher revenue

District cooling company reports $24m profit during the period

Tabreed reported a 17 per cent jump in its first-quarter revenue to Dh420 million. Reuters

The National Central Cooling Company, better known as Tabreed, reported a 3 per cent increase in its first-quarter profit on the back of higher revenue.

The total profit attributable to equity holders of the parent company for the three months to the end of March climbed to Dh88 million ($24m), Tabreed said in a statement to the Dubai Financial Market, where its shares are traded. Revenue jumped 17 per cent annually to Dh420m.

“We’re expanding our portfolio and entering new territories, with our recently announced partnership with the International Finance Corporation set to redefine Tabreed’s geographical reach and impact,” said Khaled Al Qubaisi, Tabreed’s chairman.

“And closer to home we will continue to add new customer connections, enter long-term strategic partnerships, increase our portfolio and seize opportunities.”

Tabreed is partnering with the International Finance Corporation to expand in India through a jointly owned new holding company.

The partners will commit initial equity of $100m, with a mandate to invest in projects of up to $400m over the next five years, targeting a portfolio of approximately 100,000 refrigeration tonnes servicing industrial, commercial and retail developments in Asia's third-largest economy.

Tabreed currently owns and operates 86 plants in its portfolio across the GCC, including 75 in the UAE, three in Saudi Arabia, seven in Oman and one in Bahrain, in addition to other international projects and operations.

The company doubled the size of its concession capacity in Oman with the acquisition of the district cooling plant that services Al Mouj, the sultanate’s new real estate development, it said on Thursday. Tabreed’s portfolio in Oman now includes seven plants, with Al Mouj the company’s biggest project in the country.

A further nine new connections were added in the UAE and Bahrain during the quarter, increasing Tabreed’s total connected capacity to 1,236,433 refrigeration tonnes, the company said.

Tabreed is also partnering with The Egyptian Company for Energy and Cooling projects and Marakez for Real Estate Investment Company, to provide district cooling services to the new D5M mall in New Katameya, east Cairo as part of its expansion plans in the Arab world's most populous country.

In March, Tabreed unveiled a new green financing framework to attract green equity funds to invest in its business as Gulf countries focus on cutting emissions to reach net-zero targets in the coming decades.