National Central Cooling Company PJSC ‘Tabreed’, the Abu Dhabi-based utility company released its third quarter 2009 consolidated financial results today. For the nine months ending 30 September 2009, total revenue increased by 15 per cent compared to the same period in 2008. Before certain non-cash finance costs associated with the Company’s 2011 Mandatory Convertible Sukuk, consolidated profit increased by 14 per cent over the same period.
The increase in total revenues and profits largely reflected additional chilled water billed capacity coming on stream and strong growth in contracting revenues associated with piping networks under construction. After non-cash finance costs associated with the Mandatory Convertible Sukuk, reported consolidated profit for the nine months ending 30 September 2009 fell by 4 per cent over the same period in 2008.
Financial Highlights – Nine-months ending 30 September 2009:
- Total revenue increased by 15 per cent to AED 570.7 million, compared to AED 498.3 million in the same period in 2008
- Gross profit increased by 9 per cent to AED 260.1 million compared to AED 238.0 million in 2008
- Due to non-cash finance costs (marked to market) associated with the 2011 Convertible Sukuk, reported net profit fell by 4 per cent to AED 70.9 million compared to AED 74 million in the corresponding period of 2008
- Chilled water revenue for the period was AED 258.5 million, a 27 per cent increase over the same period in 2008.
- Basic and diluted earnings per share were stable at AED 0.03 per share
Sujit S. Parhar, Tabreed CEO commented:
“The strong results today demonstrate the integral role that Tabreed plays with the growth of Abu Dhabi. We have been extremely busy this quarter building new plants to add to our portfolio of assets, and brought two new plants on-stream in the third quarter including Yas Island in time for the November Abu Dhabi Formula One Grand Prix. We have also been making progress on improving our operational efficiencies for existing operations. Our priority continues to be reducing our costs and corporate overheads and improving our operational efficiencies so that we can continue to meet the region’s infrastructure needs.”
Steve Ridlington, Tabreed CFO added:
“We are pleased that despite the continuing difficult economic climate, Tabreed has been able to improve its year-on-year results. The additional capacity added this quarter from two new district cooling plants and the 16 plants currently under construction will deliver long term and stable revenues for Tabreed’s future. 2009 has been a difficult year for Tabreed, but our focus will remain on delivering better returns for our shareholders.”
Following a number of appointments to its senior management team during the second quarter 2009, Tabreed appointed a Chief Audit and Risk Officer during the third quarter 2009. This appointment is based on the Board of Directors’ mandate for best-practice in governance, internal audit and risk management.
During the third quarter 2009 Tabreed had 16 plants under construction, and expects 9 due for completion by the end of 2009. Two new district cooling plants (Yas Island Plant 1 and T-7, serving the military) commenced commissioning during the third quarter 2009, which will add 43,000 tons of cooling capacity to Tabreed’s business.
As of 30 September 2009, Tabreed’s total installed cooling capacity is 395,100 tons across 36 district cooling plants.