National Central Cooling Company (Tabreed), on Thursday released its consolidated second quarter financial results.
The company has registered robust performance from operations demonstrating the strength of its core chilled water business. Compared to the first quarter of 2011, group revenues grew 17 per cent to Dhs286.6 million, while gross profits increased 15 per cent to Dhs117.3 million. A reduction of Dhs25 million in finance costs as a result of the closure of the recapitalisation program contributed to net profits increasing 37 per cent to Dhs43.8m.
In the first half 2011 Total revenue increased by 14 per cent to AED 532.2 million, compared to Dhs465.1 million in the same period in 2010. Gross profit increased by 22 per cent to Dhs219.3 million, compared to Dhs180.1 million in the same period in 2010.
Chilled water revenue for the period was Dhs425.6 million, a 29 per cent increase over the same period in 2010, Utility efficiency gains and growth in scale have led to gross profit margin of 45 per cent and 102 per cent growth in profit from operations over H1 2010; EBITDA of Dhs187 million — a 63 per cent increase over the same period in 2010.
Company repaid $200 million sukuk 06 on maturity on 20th July 2011, Whilst earnings remained comparable to the same period in 2010, as expected, with the increase in share capital from 243,380,000 to 659,063,000 (from the settlement of the 2008 sukuk) and the inclusion of the Dhs1.7 billion Mandatory Convertible Bond, EPS reduced from Dhs0.21 to Dhs0.06 over the same period in 2010.Waleed Al Mokarrab Al Muhairi, Tabreed’s Chairman said: “An increased contribution from the company’s core chilled water business, a strong balance sheet, and full repayment, on maturity, of the $200 million sukuk all demonstrate that we continue to make good progress in the current year.”
“Our focus remains on delivering financial and operational growth across the company, while maintaining a conservative balance sheet, creating sustainable value for shareholders.”
Sujit S. Parhar, Tabreed’s CEO, said: “Our strong results prove Tabreed’s cash-generating capabilities. Our strategy of developing the business for the longer term by focusing on the core business of chilled water is paying off — this business segment has contributed over 90 per cent of the total EBITDA in H1 2011. Our diversified customer base, long-term contracts, stable cost structure and strengthened corporate governance ensure that we are well positioned to deliver on our stated business plan.”
From / Gulf Today