Tabreed registers net profit of $35.3m in Q3 2011
Chilled water business drives growth in quarter for utilities company
Tabreed, the Abu Dhabi-based district cooling utility company, has registered a net profit of $35.3m in Q3 2011, up 12% from $31.5m in 2010.
The company said its strong performance during the quarter was driven by its chilled-water business. In addition, new customer connections and continued cost discipline drove the growth in profit during the nine months ending 30 September.
“Tabreed continues to improve its performance, with revenue and net profit increasing throughout the year. The company is well-positioned to deliver constant value,” said Tabreed chairman Waleed Al Mokarrab Al Muhairi.
While group revenue came in at $229.24m, a 10% increase from 2010’s $207.8m, the company’s chilled-water revenues made up $193.8m of that amount. This was an increase of 26% over 2010.
In addition, 11 new plants came on-line during the third quarter. Progress on the company's capacity build-out programme continued, with 36,200TR (gross) of capacity coming on-line during the quarter. Of this total, the Dubai Metro Green Line project accounted for eight plants and a capacity of 20,400TR.
With chilled water taking up a such a significant chunk of revenue, the company is "well on the path to its stated aim of reducing the contribution of its value chain business," said Tabreed CEO Sujit S. Parhar.
“Tabreed’s business model is anchored in long-term, profitable contracts, many of which are with UAE government entities, thus ensuring strong cash generation well into the future. The results demonstrate the underlying strength of our business, and Tabreed’s ability to deliver shareholder value from its projects,” said Parhar.
“With our stronger balance sheet, we have cash available to fund the completion of our existing projects, and to continue to focus on growing our chilled-water business,” he concluded.