Tabreed reports higher profit as revenue grows by a fifth

Recent additions such as Downtown Dubai and Saadiyat Island schemes contributed to increased sales

Tabreed's sales have continued to grow as it has added district cooling networks in Downtown Dubai and Saadiyat Island. Reuters

The National Central Cooling company, also known as Tabreed, reported a 4 per cent increase in net profit for the first quarter of 2021 as sales were boosted by recent additions to its portfolio.

Net profit for the period increased to Dh85.5 million ($23.2m), from Dh82.2m a year earlier as revenue grew 21 per cent to Dh357.6m.

The company's sales have continued to grow as it has added district cooling networks in Downtown Dubai and Saadiyat Island from developers Emaar and Aldar, it said in a statement.

“The first quarter results of 2021 have shown that ours is a business that continues to make strides," Bader Al Lamki, Tabreed’s chief executive said.

“We also continue to see positive results from our extensive involvement in the UAE’s push for sustainability. Our plants are modern, clean, efficient, reliable and instrumental in reducing environmental impact. That’s undoubtedly good for business and we’re at the very heart of this progressive country’s green agenda.”

Tabreed, in which French utility Engie and Mubadala Investment Company own significant stakes, currently operates 86 district cooling plants across the Gulf, 73 of which are in its home market in the UAE. It operates five plants in Oman, three in Saudi Arabia and one in Bahrain.

The company is currently in talks with fellow shareholders in Qatar Cooling Company about a potential sale of its stake, according to a note in its financial statements. It expects a deal to be reached within the next 12 months.

Tabreed bought two district cooling plants on Saadiyat Island in Abu Dhabi from Aldar in December for Dh963m. This followed on from an agreement with Emaar Properties to buy an 80 per cent stake in its Downtown Dubai district cooling network for Dh2.48 billion in April last year. In October, it gained board approval to raise up to $1bn to fund growth opportunities and has already tapped markets for $500m. It is targeting growth in countries with high-density populations such as Egypt, India and Saudi Arabia.

Within the past quarter, its total connected capacity increased to more than 1.4 million refrigeration tonnes, with 492 tonnes being added in the UAE and 300 tonnes in Oman.

In February this year, Tabreed also began a series of pilot projects aimed at making its plants more efficient and to prolong their lifespan.

The company had more than Dh13.7bn of assets at the end of March.