Tabreed outperforms as Q3 profit surges 13% to Dh370M

Dubai - Company maintains strong performance despite challenging environment

National Central Cooling Company reported on Thursday a 13 per cent increase in year-on-year net profit to Dh370 million in the third quarter.

The company known as Tabreed said it maintained a strong performance in a challenging environment, and was able to outperform several key metrics year-on-year as total revenue increased by 12 per cent year-on-year to Dh1.258 billion.

In a statement, Tabreed said the results demonstrate that its flexible and dynamic strategy has adapted well ensuring business continuity and pursuing growth.

“The company has proceeded to take every precaution to ensure its services remain uninterrupted, whilst also adopting industry-leading health and safety practices and sanitisation programmes to ensure the safety of its staff, customers and suppliers,” it added.

Core chilled water revenue increased by 14 per cent to Dh1.219 billion from Dh1.073 billion in the same 2019 quarter. Ebitda (earnings before interest, taxes, depreciation and amortisation) increased by 20 per cent to Dh677 million while net profit attributable to the parent increased by 13 per cent to Dh370 million from Dh329 million a year ago.

Khaled Abdulla Al Qubaisi, Tabreed’s chairman, said the company’s resilience and agility to adjust to the unique operating environment this year is not only demonstrated in the current results, but also in the team’s continued focus on advancing solutions that have helped make it the district cooling partner of choice across the region and continuing our growth despite the challenges.

Bader Al Lamki, Tabreed’s CEO, said 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 businesses.

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

In October, Tabreed raised $500 million with a seven-year, 2.5 per cent coupon bond issuance. The issuance was oversubscribed almost five times at its initial size of $400 million which demonstrates international investors’ confidence in Tabreed’s past and future performance.

— issacjohn@khaleejtimes.com