Tabreed first-half revenue grows by 22%

Tabreed CEO Sujit Parhar

Improvements in plant efficiency and increased billing capacity have allowed Tabreed of Abu Dhabi to increase its total revenue for the six months ending 30 June 2009 by 22%, while gross income increased by 12%.

Chilled-water revenue for the period was AED148.2 million (US$40.3 million), a 21% increase over the same period in 2008. This is attributable to an increase in chilled water sales as new plants came on stream and as seasonal demand increased. Total sales increased by 21 725 tons (10.3%) compared to the first half of 2008.

After the mark-to-market non-cash finance costs, reported consolidated net income fell by 4% over the same period in 2008. Before certain non-cash finance costs associated with the company’s 2011 Convertible Sukuk, consolidated net income increased by 12% over the same period, in line with gross income.

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Sujit S. Parhar, Tabreed CEO, commented: “During the first six months of 2009 there have been a number of significant management, operational and process changes at Tabreed. In particular, a strong emphasis is being placed on increasing operational efficiencies to enhance the yield that we derive from the assets we have invested in over the last 11 years.

“These changes reflect the mandate of the board of directors to better align Tabreed’s business strategy with the infrastructure demands of Abu Dhabi. However, it is important that the business continues to deliver solid results through this transitionary period.

“I believe the results demonstrate the strong fundamentals of our business and the commitment of all of our employees to improve performance. The changes that we are implementing are not yet fully in place, but I am confident that, once complete, they will position the company to continue to improve performance and deliver on the expectations of our shareholders.”

Steve Ridlington, Tabreed CFO added: “Given the difficult economic climate of 2009, Tabreed’s first-half results represent a significant achievement. We are particularly pleased about the improving results from our chilled water business as new capacity comes on stream. This will deliver long-term and stable revenues for the company’s future.

“However, the remainder of 2009 will be challenging for Tabreed, reflecting the continuing difficult trading conditions. Our focus must continue to be on the fundamentals – safeguarding our customer base, delivering the pipeline of new projects, and securing long-term financing to enable us to meet the region’s infrastructure demands,” said Ridlington.