Tabreed re­ports $87m in­crease in net profit

The growth was mainly driven by the ac­qui­si­tion of S&T Cool in March.

MEP Middle East - - SUPPLIER NEWS -

Dis­trict cool­ing util­ity com­pany Na­tional Cen­tral Cool­ing Com­pany re­leased its con­sol­i­dated fi­nan­cial re­sults for the first nine months of 2018.

Tabreed re­ported a 10% in­crease in net profit to $87m (AED319.3m) for the year up to 30 Septem­ber, com­pared with the same pe­riod in 2017.

The growth was mainly driven by the ac­qui­si­tion of S&T Cool in March, a dis­trict cool­ing provider on Reem Is­land in Abu Dhabi. In ad­di­tion, there was a par­tial sale of Saudi Tabreed fol­low­ing the in­vest­ment by the IDB In­fra­struc­ture Fund II, re­duc­ing Tabreed’s to­tal share­hold­ing in Saudi Tabreed from 25% to 20%.

Tabreed’s lat­est fi­nan­cial re­sults fol­low its an­nounce­ment last month that it suc­cess­fully is­sued a US$500m (AED1.8bn) fixed rate se­nior un­se­cured US dol­lar de­nom­i­nated RegS sukuk with a 7 year tenor. The is­sue was 50% over­sub­scribed and saw strong in­sti­tu­tional de­mand both lo­cally and in Asia and Europe. The sukuk was com­pet­i­tively priced, with a profit rate of 5.5%, un­der­pinned by Moody’s

Baa3 and Fitch’s BBB credit rat­ings, as­signed to Tabreed and to the sukuk it­self. Tabreed also ar­ranged new bank fa­cil­i­ties of up to

AED1.5bn which, along with the sukuk, will be used to re­fi­nance AED2.8bn of cur­rent cor­po­rate debt and pro­vide a com­mit­ted re­volv­ing credit fa­cil­ity which is avail­able to fund the busi­ness as needed.

Khaled Ab­dulla Al Qubaisi, Tabreed’s chair­man, com­mented: “We are pleased to re­port an­other strong set of both fi­nan­cial and op­er­a­tional re­sults, with a net in­come in­creas­ing 10%, re­flect­ing our solid group per­for­mance. We also saw stable growth in our con­nected ca­pac­ity, adding over 29,000 of new cus­tomer con­nec­tions in the first nine months of this year. Ad­di­tion­ally, in Q3 we re­ceived new in­vest­ment grade rat­ings from Moody’s and Fitch, which is a strong en­dorse­ment of Tabreed’s strong util­ity busi­ness model.”

Jasim Hu­sain Tha­bet, Tabreed’s CEO, added: “These solid re­sults fol­low our suc­cess­ful rais­ing of a 500 mil­lion dol­lar sukuk, which was 50% over­sub­scribed, re­ceiv­ing strong in­sti­tu­tional de­mand both lo­cally and in Asia and Europe. This, cou­pled with an­other quar­ter of con­sis­tently strong re­sults, con­firms Tabreed’s po­si­tion as a leader in dis­trict cool­ing in the re­gion.”

Jasim Hu­sain Tha­bet, CEO, Tabreed.

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