Tabreed quarterly profit climbs 13% in challenging climate

The National Central Cooling Company, also known as Tabreed, reported a 13 per cent increase in third-quarter net profit, driven by “resilience and agility” in a tough operating market.

Net profit attributable to equity holders of the parent for the three months to the end of September grew to Dh146 million ($40m) on a year earlier, the company said in a statement to the Dubai Financial Market, where its shares are traded.

“Tabreed remains well positioned from an operational and capital perspective despite the uncertainties and challenges brought on by this year’s events, as reflected by the resilient and strong performance of our businesses,” said chief executive Bader Al Lamki.

“In turn, we are making progress on executing on our longterm plans, including investing in infrastructure and using capital in attractive, long-term opportunities.”

Revenue for the period increased 20 per cent annually to Dh548m on a year earlier, said the district cooling provider, in which France’s Engie and Abu Dhabi’s Mubadala Investment Company hold stakes.

In October, Tabreed gained approval from shareholders to raise up to $1 billion through the issuance of bonds or sukuk to fund acquisitions, as well as for general corporate purposes.

Shareholders authorised the board to issue bonds or sukuk in one or more tranches over the next 12 months.

It subsequently raised $500m with a seven-year, 2.5 per cent coupon bond issuance. The issuance was oversubscribed almost five times at its initial size of $400m.

Net profit in the first nine months increased 13 per cent to Dh370m from a year earlier, while revenue jumped 12 per cent to Dh1.3bn.

In April, Tabreed bought a majority stake in Emaar Properties’ Downtown Dubai district cooling business for

Dh2.48bn. The deal, financed through a corporate loan, gave Tabreed an 80 per cent stake, with Emaar retaining the balance under a long-term partnership deal.

In January, the company bought cooling plants in Masdar City. It is exploring the development of largescale cooling plants in Sharjah through a joint venture with environmental management company Bee’ah.

Tabreed has 83 district cooling plants, and operates in the UAE, Saudi Arabia, Bahrain, Qatar and Oman.

It provides district cooling to UAE developments such as Burj Khalifa, the Sheikh Zayed Grand Mosque, Dubai Metro and Ferrari World.