Tabreed’s third-quarter profit rises 69% on strong revenue

Profit attributable to equity holders of the parent company in the three-month period reached $43.4m

Tabreed's cooling plant on Yas Island in Abu Dhabi. Tabreed owns and operates 86 district cooling plants across the GCC. Victor Besa / The National

The National Central Cooling Company, better known as Tabreed, reported a 69.2 per cent increase in third-quarter profit as revenue rose, driven by new connections added in the UAE, Oman and Bahrain.

Profit attributable to equity holders of the parent company in the three months to the end of September climbed to Dh159.2 million ($43.3 million), Tabreed said in a statement on Wednesday to the Dubai Financial Market, where its shares are traded.

Revenue for the reporting period rose by nearly 15 per cent year-on-year to more than Dh683.7 million.

“Throughout 2022, Tabreed has achieved important international growth, elevated public awareness and accomplishment of long-term strategic goals … third-quarter results show not only Tabreed’s resilience but also the wisdom of its organic and sustainable approach to growth,” Tabreed chairman Khaled Al Qubaisi said.

Founded in 1998, 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.

As part of its regional expansion, Tabreed also plans to enter new markets in North Africa and Kuwait, it said in June.

Net profit for the first nine months of 2022 rose by 30 per cent annually to reach more than Dh399.6 million, as revenue climbed to more than Dh1.65 billion during the January-September period.

“Building on this momentum, both regionally and internationally, we will continue to establish new client relationships, engage in long-term alliances and expand our portfolio, further solidifying our already stellar reputation for operational excellence,” Mr Al Qubaisi said.

In September, Tabreed announced a Dh306.4 million agreement with developer Egyptians for Healthcare Services to provide district energy services to CapitalMed, its new healthcare city project. The move is part of the company’s plans to expand its presence in Egypt, it said.

The third quarter also saw new connections added in the UAE, Oman and Bahrain, increasing the company’s total connected capacity to more than 1.25 million refrigeration tonnes (RT).

About 48,106 RT of new customer connections were added in the nine-month period, with load additions of 28,403 RT in the UAE, 19,203 RT in Oman and 500 RT in Bahrain.

Earlier this year, Tabreed collaborated with the Egyptian Company for Energy and Cooling projects and Marakez for Real Estate Investment Company to provide district cooling services to the new District Five Mall in east Cairo.

“With these impressive third-quarter results, Tabreed continues to demonstrate its impeccable credentials as a business that is secure for its stakeholders, investors, employees and the environment,” Tabreed chief executive Khalid Al Marzooqi said.

“We are constantly seeking new collaboration opportunities with other progressive businesses that share our core principles, and we have exciting plans for the future, with an increasingly diverse array of services that will bolster our position as the industry leader.”