Tabreed second quarter net income jumps 14.4% on revenue rise

The district cooling firm counts France's Engie and Mubadala Investment Company as shareholders

Tabreed is seeking shareholders approval to issue $1bn in bonds or sukuk. Jumana El Heloueh / Reuters

Tabreed, the district cooling company in which France's Engie and Mubadala Investment Company hold stakes, reported a 14.4 per cent jump in the second quarter net profit as revenues climbed.

Net profit attributable to shareholders at the end of three-month period to June 30 increased to Dh134.17 million from a year earlier, Tabreed said in a bourse filing to the Dubai Financial Market, where its shares are traded. Revenue rose 1.9 per cent to Dh376.25m at the end of the second quarter from a year earlier, it said.

“We are now in our 20th year of operation and, year after year, we have demonstrated consistent robust results underpinned by Tabreed focus on growing our core chilled water business,” said Jasim Thabet, Tabreed’s chief executive.

_______

Read More:

________

“We continue to strengthen our regional presence and deliver operational excellence by building strategic partnerships with leading government and private entities resulting in the addition of more landmark projects to our portfolio.”

Engie acquired a 40 per cent shareholding in the utility provider last year from Mubadala for Dh2.85billion. The Abu Dhabi strategic firm retains a 42 per cent in Tabreed.

The company boosted its total connected capacity across the Arabian Gulf markets to 1,113,906 Refrigeration Tonnes (RT), with 21,588 RT of new customer connections added during the first half of 2018.

With 72 district cooling plants located throughout the region, Tabreed provides services to key developments in the region including projects such as Abu Dhabi’s Al Maryah Island, Yas Island, Sheikh Zayed Grand Mosque, Dubai Metro, Dubai Parks and Resorts, and the Jabal Omar Development in Saudi Arabia.

"Tabreed remains the partner of choice across the GCC for providing energy-efficient, cost effective, and environmentally friendly cooling solutions. We are confident that we will further expand our operations whilst continuing to deliver stable returns to our shareholders," Tabreed chairman Khaled Al Qubaisi, said.

Tabreed, which reported a 3.1 per cent increase in its first quarter net profit, in April announced its acquisition of 50 per cent of S&T Cool District Company on Reem Island in Abu Dhabi to become the sole owner of the utility firm. The plant has connected capacity of over 32,000 RT, which has further boosted Tabreed's operational capacity, it said at the time.