Increase in chilled water sales a boon for Tabreed
Tabreed second-quarter results boosted by new plants, customers
An increase in chilled water sales as new plants and customers come online has boosted the second-quarter financial results of utility company Tabreed of Abu Dhabi.
Chilled water revenue for the period was AED285.3 million, a 94% increase over the same period in 2009. For the six months ended 30 June 2010, total revenue increased by 16% to AED432.3 million. Net profit increased by 83% to AED86.8 million over the same period in 2009. Excluding minority interests, Tabreed’s share of profits was AED80.7 million compared to AED30.1 million in the previous year.
“Tabreed’s focus on business fundamentals and the ongoing recapitalisation programme is repositioning the company for growth. Our strategy has been to focus on the core business of chilled water, and these robust first half results reflect growth in the company’s chilled water business and improved operational efficiencies,” said Tabreed CEO Sujit S Parhar.
“Going forward, these factors, combined with a diversified customer base, long-term contracts, a stable cost structure and strengthened corporate governance, will provide the foundation for continued growth,” said Parhar.
“Tabreed remains a pioneer within the district cooling industry, able to offer bespoke solutions to the often complex cooling requirements of our customers,” said Tabreed MD Khaled Al Oubaisi.
Following the addition of four new plants in the first quarter of 2010, a further four plants with a combined capacity of 27,525 TR were added in the second quarter 2010. This brings Tabreed’s total installed cooling capacity to 449,625 (gross) TR across 44 plants, compared with 34 plants and a cooling capacity of 352,100 TR a year ago.
The four plants added in the second quarter were: Al Kifaf (10,000 TR), Rashidiya (7,500 TR), Jebel Ali – Jumeirah (5,626 TR) and Jebel Ali Industrial (4,000 TR). A further eight plants are under construction, along with two planned expansions, of which five plants and one expansion are expected to come online in 2010. The capacity addition for 2010 is estimated at 148,300 (gross) TR.