Successfully completes 11 new district cooling plants in Q3 2011
National Central Cooling Company PJSC (‘Tabreed’), the Abu Dhabi-based district cooling utility company, released its unaudited consolidated third quarter financial results today. The company registered a robust operational performance driven by its chilled water business. New customer connections and continued cost discipline drove the growth in profit during the period.
Financial Highlights – Nine months ended 30 September 2011
- Group revenue Year to Date (YTD) increased by 10 per cent to AED 842.0 million, compared to AED 763.3 million for the same YTD period in 2010
- Net profit YTD increased by 12 per cent to AED 129.8 million, compared to AED 115.7 million for the same YTD period in 2010
- Economies of scale and cost discipline improved gross profit margins to 41 per cent
- Chilled water revenue YTD was AED 712 million, a 26 per cent increase over the same YTD period in 2010
- Whilst earnings compared to 2010 have increased, as expected, with the increase in share capital from 243,380,000 to 659,063,000 (from the settlement of the 2008 Sukuk) and the inclusion of the AED 1.7 billion Mandatory Convertible Bond and the AED 825 million from the Subordinated Bridge Loan, Earnings per Share reduced from AED 0.31 to AED 0.07 over the same period in 2010
- Debt to equity ratio now stands at 0.97, as compared to 3.11 as at the same period last year
- EBITDA of AED 323.7 million, a 23 per cent increase over the same YTD period in 2010
Waleed Al Mokarrab Al Muhairi, Tabreed’s Chairman, said:
“As these results demonstrate, Tabreed continues to improve its performance, with revenue and net profit increasing throughout the year. The Company is well positioned to deliver consistent value.
Operationally, Tabreed has delivered a number of vital projects during this period and will continue to benefit from improved operational efficiencies and economies of scale. Tabreed’s track record and experience of successfully delivering pioneering projects makes it a vital partner in developing our region’s infrastructure and supporting our economic growth.”
Sujit S. Parhar, Tabreed’s CEO, said:
“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. Today’s results demonstrate the underlying strength of our business, and Tabreed’s ability to deliver shareholder value from its projects. With our stronger balance sheet, we have cash available to fund the completion of our existing projects and continue to focus on growing our core chilled water business.”
Q3 2011 Highlights:
Tabreed’s chilled water division remained the key driver for the business, delivering further growth in revenues and profits – revenues increased 26 per cent to AED 712 million while gross profit increased 34 per cent to AED 305 million, as compared to the same period in 2010. Profits from operations registered a 54 per cent increase to AED 212 million and gross margins increased to 43 per cent, compared to 40 per cent in the same YTD period last year. EBITDA, an indicator of cash flow generation, increased to AED 299 million against AED 206 million in the same YTD period last year.
This performance was driven by new customer connections as well as 11 new plants which have come online during the quarter. Progress on the capacity build-out program continued with 36,200 RT (gross) of capacity coming online in Q3 2011, of which the Dubai Metro Green Line accounted for 8 plants and a capacity of 20,400 RT.
Value Chain Business
In line with the company’s strategy to reduce the contribution of its value chain business and to focus on the core chilled water business, revenues stood at AED 130 million and gross profits at AED 40 million for the period as Tabreed’s current capital spending program draws to a close. 0-03