Tabreed net profit climbs on rising international presence

9-month revenue surges 13 per cent to DhDh1.66 billion; Q3 saw changes to foreign ownership limits and major new deal signing in Egypt

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The company added 48,106 refrigeration tonnes (RT) of new customer connections with load additions of 28,403RT in the UAE, 19,203RT in Oman and in Bahrain were increased by 500RT. — File photo

Published: Tue 15 Nov 2022, 5:26 PM

Tabreed on Tuesday said its nine-month net profit rose three per cent to Dh400 million as the company’s total connected capacity reached 1,258,201 refrigeration tonnes.

In a statement, the UAE’s district cooling provider released its consolidated financial results for the first nine months of 2022, reporting an earnings before interest, taxes, depreciation and amortization (EBITDA) of Dh912 million – an 18 per cent increase over the same period last year.

The company also reported 13 per cent year-on-year growth in revenues to Dh1.66 billion as the company added new customer connections to its network. It added 48,106 refrigeration tonnes (RT) of new customer connections with load additions of 28,403RT in the UAE, 19,203RT in Oman and in Bahrain were increased by 500RT.

Strong performance in 2022

Khaled Abdulla Al Qubaisi, Tabreed’s chairman, said it had been a strong nine months for the company.

“Throughout 2022, Tabreed has achieved important international growth, elevated public awareness, and accomplishment of long-term strategic goals. These third quarter results show not only Tabreed’s resilience but also the wisdom of its organic and sustainable approach to growth – it is truly an exceptional UAE company,” he said.

He said Tabreed continues to post record profits and has a consistently strong balance sheet, evidenced by Fitch’s updated rating outlook of “stable” and affirmed at BBB.

“Building on this momentum, both regionally and internationally, we will continue to establish new client relationships, engage in long term alliances and expand our portfolio, further solidifying our already stellar reputation for operational excellence,” he said.

Major announcements in Q3

During the past three months, Tabreed made two significant announcements. On September 13, it was confirmed that shareholders voted to harmonise with recent UAE changes to commercial law by increasing its foreign ownership limit to 100 per cent – a strategically important move that increases flexibility and ensures the best possible share marketability.

The following day, on September 14, Tabreed signed an agreement with Egyptians for Healthcare Services Company (EHCS) to design, build and operate an expansive district energy plant to supply cooling and heating to CapitalMed, an all-new healthcare city project by EHCS in Cairo. This is the second major deal announcement in Egypt by Tabreed since the company entered this new market in February 2022.

Additionally, and consistent with Tabreed’s progress throughout 2022, the third quarter saw new connections added in the UAE, Oman and Bahrain, increasing the company’s total connected capacity to 1,258,201RT.

“We are constantly seeking new collaboration opportunities with other progressive businesses that share our core principles, and we have exciting plans for the future, with an increasingly diverse array of services that will bolster our position as the industry leader,” said Khalid Abdulla Al Marzooqi, Tabreed’s chief executive officer.

Tabreed provides essential and sustainable district cooling services to iconic developments such as the Burj Khalifa, Sheikh Zayed Grand Mosque, Louvre Abu Dhabi, Ferrari World, Emirates Towers, Yas Island, Al Maryah Island, The Dubai Mall, Dubai Opera, Dubai Metro, Bahrain Financial Harbor and the Jabal Omar Development in the Holy City of Makkah.

The company owns and operates 86 plants in its portfolio across the GCC, including 75 in the United Arab Emirates, three in the Kingdom of Saudi Arabia, seven in Oman and one in the Kingdom of Bahrain, in addition to other international projects and operations.

— muzaffarrizvi@khaleejtimes.com