Tabreed’s second-quarter profit rises on higher revenue

District cooling company reports $41 million profit as it continues to expand its operations

Tabreed on Wednesday said its second-quarter revenue rose 9 per cent to Dh555.7 million. Reuters

National Central Cooling Company, better known as Tabreed, reported a 3 per cent increase in its second-quarter profit as revenue jumped amid the company's push for geographical expansion.

Profit attributable to equity holders of the parent company for the three months to the end of June climbed to Dh152.1 million ($41.41m), Tabreed said in a statement to the Dubai Financial Market, where its shares are traded.

Revenue for the reporting period rose by about 9 per cent, year on year, to Dh555.7m.

Net profit for the six-month period increased 3 per cent to Dh240.4m as revenue climbed 12.3 per cent to Dh975.7m.

“It’s another remarkable result for Tabreed but not at all surprising, as the carefully considered and planned trajectory for this incredible pillar of UAE industry is coming together precisely as we envisaged," said Tabreed chairman Khaled Al Qubaisi.

"It has been a remarkable six months of geographical expansion, increased public awareness and making good on long-term objectives."

Tabreed owns and operates 86 district cooling plants 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.

It provides district cooling services to developments in the UAE including the Burj Khalifa, Sheikh Zayed Grand Mosque, Louvre Abu Dhabi, Ferrari World, Emirates Towers and The Dubai Mall, among others.

Tabreed doubled the size of its "concession capacity" in Oman with the acquisition of a district cooling plant that services Al Mouj development, the company said on Wednesday.

Tabreed’s portfolio in Oman includes seven plants and Al Mouj represents the company’s biggest project in the sultanate, “evidence of its desire to drive further investment in this important territory”, it said.

The company also increased the number of connections in the UAE during the second quarter of this year, with the total connected capacity in the Arab world's second-largest economy growing to more than 1.24 million refrigeration tonnes.

“The first half of 2022 is an accurate indication of where this ... company is heading and, in the near future, we will see other long-term strategic plans and investments come to fruition,” said Khalid Al Marzooqi, Tabreed’s chief executive.

Tabreed plans to expand in India and is bullish about growth in Asia’s third-largest economy.

Last year, Tabreed formed a new holding company with the World Bank’s International Finance Corporation to invest up to $400m in the next five years to expand in India.

India's potential is "beyond what we expected in initial stages”, Mr Al Marzooqi told The National last month.

The partners are focusing on a portfolio of more than 100,000 refrigeration tonnes of cooling capacity in India by 2026 as they aim to serve industrial, commercial and retail developments in the country.

The company is also looking at new opportunities to expand in the UAE and other GCC countries.