UAE's Tabreed notes 3% profit hike in Q1 2019 amid India expansion
Profits hit $22m in Q1 2019, during which the cooling firm was confirmed to build a 20,000 RT plant in Andhra Pradesh, India
Dubai Financial Market-listed National District Cooling Company (Tabreed) reported a profitable Q1 2019, with the company recording a 3% hike in the figure to $21.8m (AED80m).
According to a stock market missive, the surge in profits came as the company continued to deliver consistent performance through its 74 district cooling plants across the GCC. Together, these facilities provide more than 1.1 million refrigeration tons (RT) of cooling capacity for customers in the Gulf countries.
The group’s revenue for the first quarter of 2019 stood at $80.8m (AED296.8m) – an 8% increase compared to $74.7m (AED274.4m) in Q1 2018.
Revenue from the core chilled water unit for Q1 2019 grew year-on-year by 7% to $75.2m (AED276.1m).
In April 2019, Tabreed appointed Bader Al Lamki as its new chief executive officer, who replaced the company’s first Emirati CEO, Jasim Husain Thabet.
Speaking on the quarterly profits, chairman of Tabreed, Khaled Abdulla Al Qubaisi, said: “Our strong first quarter builds on a solid 2018, during which we continued to build on our reputation as one of the UAE’s strongest and most successful businesses."
In February 2019, the company signed a 30-year concession with India's state-level Government of Andhra Pradesh to build, own, operate and transfer the Asian nation’s first district cooling system in Amaravati, the state’s new capital city.
The agreement was signed between Tabreed and Andhra Pradesh Capital Region Development Authority for the former's first plant outside the GCC, which will have a cooling capacity of 20,000 RT.
“We are proud to now be pioneering district cooling in India alongside our established presence in the UAE and the GCC,” added Al Qubaisi, commenting on the company’s India expansion.
Tabreed’s total connected capacity across the GCC was recorded at 1,134,329 RT as of 31 March.
In Q1 2019, Tabreed saved 206 million kilowatt hours (KWh) of energy across the GCC, enough to power approximately 11,700 homes every year in the UAE.
In the same period, it also reduced CO2 emissions by 93,440 tonnes, equal to eliminating emissions from 22,400 vehicles every year.
Commenting on a profitable first quarter, Tabreed's new CEO, Al Lamki, said: “This quarter’s results underline customer confidence in Tabreed’s operational strength and two decades of leadership and experience.
“This strong platform puts us in a good position for the remainder of 2019 and beyond,” added Al Lamki.