Tabreed’s profits grow 17% in first half of 2014

Increased awareness of the energy and environmental benefits of district cooling, the district cooling company continues to successfully connect new customers in the UAE and across the GCC to its district cooling plants, with customer connections increasing by 87,700 RT in the first half of the year.

Net profit increased by 17 per cent to Dh148.6 million, core chilled water revenue increased by 4 per cent to Dh483.1 million. Group revenue increased by six per cent to Dh526.3 million.

During the period, Tabreed-MIP consortium acquired the 80,000 RT Al Maryah Island district cooling plant in a transaction valued at Dh1.05 billion. Its customer connections increased by 87,700 RT; Expanded affiliate company S&T Cool’s Reem Island plant by 17,000 RT to just over 30,000 RT; and group connected capacity in the GCC increased by 10 per cent to 926,100 RT.

Waleed Al Mokarrab Al Muhairi, Tabreed’s Chairman, said: “In addition to a strong financial performance, Tabreed reached several important operational milestones in the first half of 2014, underlined by the renewed master services agreement signed with the UAE Armed Forces, which is valued at Dh6 billion over the next 20 years, as well as our expanding regional footprint.”

Tabreed currently has 67 district cooling plants across the GCC and provides its cooling services to many of the region’s landmark projects including the Shaikh Zayed Grand Mosque, Cleveland Clinic Abu Dhabi, Dubai Metro, World Trade Centre Abu Dhabi, Ferrari World Abu Dhabi, Yas Marina Circuit, the Pearl – Qatar, and the Jabal Omar Development Project in the Holy City of Makkah.

Jasim Husain Thabet, Tabreed’s Chief Executive Officer, said his company successfully leveraged economies of scale to connect new customers to our plants, with just over 87,000 RT connected during this period.

This increasing demand for district cooling is driven by a robust economy and a maturing market, as companies today are actively seeking to reduce their organizations’ carbon footprint, he said.

— haseeb@khaleejtimes.com