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Tabreed Reports Net Profit of AED 329.1 Million in Q3 2019

Moody’s reaffirms Tabreed’s Credit Rating

| | Nov 3, 2019 | 1:44 pm
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Bader Al Lamki

ABU DHABI, UAE, 3 November 2019: National Central Cooling Company (Tabreed) released its consolidated financial results for the first nine months of 2019, reporting an increase of 3.1% in the net profit to AED 329.1 million.

In a Press release, the District Cooling utility company said it continues to meet the growing demand for District Cooling solutions and has recently commenced supplying 12,000 tonnes of refrigeration (TR) of cooling services to the expansion of the Galleria Mall Al Maryah Island, covering an area of 1.4 million square feet. The new connection comes as part of Tabreed’s long-term concession, as the exclusive provider of District Cooling services for landmark developments on Al Maryah Island through a partnership with Mubadala Infrastructure Partners (MIP), the release said.

Financial highlights of the nine months ended September 30:

  • Net profit attributable to the parent increased by 3.1% to AED 329.1 million (Q3 2018: AED 319.3 million)
  • Group revenue increased by 3.5% to AED 1,127.9 million (Q3 2018: AED 1,090 million)
  • Core chilled water revenue increased by 3.8% to AED 1,073.1 million (Q3 2018 AED 1,033.7 million)
  • EBITDA increased by 11.2% to AED 562.5 million (Q3 2018: AED 505.9 million)
  • Share of results of associates and joint ventures decreased by 1.2% to AED 69.8 million (Q3 2018: AED 70.7 million)

Operational highlights of the nine months ended September 30:

  • In the first three quarters of the year, the total Group connected capacity across the GCC region increased to 1,161,227 TR, with 29,848 TR of new customer connections added; one new plant in Oman has become fully operational

Environmental highlights of the nine months ended September 30:

  • Contributed to saving 1.56 billion kilowatt/hours across the GCC – enough energy to power approximately 88,846 homes in the UAE, annually
  • These power savings prevented the release into the atmosphere of 932,699 metric tonnes of carbon dioxide – the equivalent of eliminating the emissions from 202,761 vehicles, annually

Khaled Abdulla Al Qubaisi, Tabreed’s Chairman, commented: “Tabreed’s continued growth demonstrates its ability to consistently deliver stable results, drive shareholder value further and reinforce our standing as the leading international District Cooling developer. We are committed to providing energy-efficient, cost-effective and environmentally friendly cooling solutions and contribute to the initiatives aimed at reducing carbon footprint in the region and preserving the environment and natural resources for present and future generations.”

Bader Al Lamki, Tabreed’s Chief Executive Officer, said: “Tabreed has delivered another strong set of financial and operational results, with net income increasing by 3.1%, reflecting our solid group performance. The stable growth in our connected capacity enabled us to deliver consistent results and tangible returns. Additionally, Tabreed’s strong financial position qualifies it to capitalize on growth opportunities, as reaffirmed by Moody’s, who had recently published its credit opinion, which is a strong endorsement of Tabreed’s robust business model. Tabreed investment grade rating (Baa3) by Moody’s was supported by resilient cash flows from long-term fixed charge contracts, low operating risk levels, strong market position in the Middle East and complementary shareholders.

“Tabreed is committed to providing energy-efficient and sustainable cooling solutions that have become an integral part of the infrastructure for major developments across the region. On this front, we are proud to deliver our services to Al Maryah Island and the expansion of the Galleria Mall.  This new connection confirms our customers’ trust and confidence in our innovative, efficient and reliable cooling solutions.”

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