Group’s total installed capacity across the region reaches 749,125 RT
National Central Cooling Company PJSC (‘Tabreed’), the Abu Dhabi-based district cooling utility company, released its 2011 unaudited full year financial results today. The company delivered a strong operating performance driven by its core chilled water business. New plants and customer connections, combined with improved organizational efficiencies, increased net profit (attributable to ordinary equity holders of the parent) by 34 per cent to AED 182.7 million, up from AED 136.8 million in 2010.
Financial Highlights – Twelve months ended 31 December 2011
- Group revenue for the year increased by 9 per cent to AED 1,114.6 million (2010: AED 1,023.7 million)
- Net profit increased by 34 per cent to AED 182.7 million (2010: AED 136.8 million)
- Chilled water revenue for the year increased by 25 per cent to AED 943.8 million (2010: AED 753.3 million), while chilled water profit increased 37 per cent to AED 274.4 million (2010: AED 200.3 million)
- Debt to equity ratio decreased to 0.93 (2010: 3.15)
- EBITDA of AED 434.7 million, a 18 per cent increase (2010: AED 368.2 million)
- On 1 April 2011, Tabreed successfully completed its recapitalization program, putting in place a stable capital structure and enabling the company to settle its 06 Sukuk in full upon maturity
Operational Highlights – Twelve months ended 31 December 2011
- 11 new plants came online during 2011
- 45,800 RT capacity added during the year – an 8 per cent increase from 2010
- 78,115 RT new connections achieved in 2011 – 16 per cent increase from 2010
- Installed capacity in the UAE has reached 587,325 RT and connected capacity 555,181 RT
- Group’s installed capacity across the region has reached 749,125 RT and connected capacity 703,176 RT
Waleed Al Mokarrab Al Muhairi, Tabreed’s Chairman, said: “Our full year performance, in particular our revenue growth and significantly increased profitability, demonstrates the success of our strategy of focusing on the chilled water business, improving operational efficiencies and applying stricter cost discipline across the business. Our strategy will remain constant in the year ahead as we complete our build-out program and build upon the notable achievements of 2011.
Our stakeholders recognize district cooling as a vital utility because of the energy efficient, cost effective and reliable cooling it provides. As the partner of choice for leading institutions, Tabreed will capitalize on future demand for cooling that will be driven by the continued investment in and diversification of the Abu Dhabi and other regional economies.”
Sujit S. Parhar, Tabreed’s CEO, said: “As these results demonstrate, Tabreed has a solid fundamental business model driven by its core chilled water business, underpinned by its strict cost discipline and continuously improving organizational efficiencies.
During 2011, we successfully completed the construction of 11 plants, eight for the Dubai Metro Green Line, which has increased our total connected capacity in the UAE to 555,181 RT. With 95 per cent of our total capacity contracted through long-term contracts with customers, Tabreed is now well positioned to continue to deliver sustainable and recurring revenues and profits.”
Full Year 2011 Highlights:
Tabreed’s chilled water division, the key driver for the business, delivered further growth in revenues and profits. Revenues increased 25 per cent to AED 943.8 million while gross profit increased 27 per cent to AED 406 million. Profits from operations registered a 37 per cent increase to AED 274.4 million. EBITDA, an indicator of cash flow generation, increased to AED 401.4 million against AED 296.1 million from the previous year 2010.