Tabreed posts 7% increase in 2018 net profit at Dhs427.6m
31 Jan 2019
ABU DHABI: The National Central Cooling Company (Tabreed) has released its audited financial results for 2018 reporting a 7 per cent increase in net profit to Dhs427.6 million for the full year by adding 39,061 Refrigeration Tonnes (RTs) of new connections resulting in the delivery of over 1.1 million RTs of cooling capacity.
Based on such results, Tabreed’s Board of Directors recommended a cash dividend for 2018 of 9.5 fils per share, up from 8 fils per share paid in 2018.
Tabreed announced a number of significant achievements during 2018, in addition to celebrating its 20th anniversary. During the year, Tabreed acquired 50 per cent of S&T Cool District Cooling Company, a major district cooling provider on Reem Island in Abu Dhabi, from Aldar Properties. Tabreed also sold part of its stake in its associate Saudi Tabreed to the IDB Infrastructure Fund II.
Tabreed also added 39,061 RT of new customer connections across the GCC and included Warner Bros. World Abu Dhabi theme park, which opened on Yas Island in July 2018 and which reinforced Tabreed’s reputation as a partner of choice for the UAE’s most high-profile assets.
In addition, Tabreed successfully issued a $500 million, seven year tenor sukuk, which was 50percent oversubscribed, reflecting strong demand from local and international investors, and received investment grade credit ratings from Moody’s and Fitch of Baa3 and BBB respectively. These consistently strong results, new sukuk and new bank facilities of up to Dhs1.5 billion reinforce Tabreed’s strong business model and solid funding base, positioning it well for future growth.
Commenting on the results, Khaled Abdulla Al Qubaisi, Tabreed’s Chairman, said, "Tabreed has become the leader in district cooling, with 74 plants across five countries. Our financial and operational achievements this year demonstrate continuing excellence across our business. I am optimistic about 2019 and beyond as economic diversification in the GCC and increasing urbanisation drives investment in high-density developments. This will leave Tabreed well positioned to provide cost-effective and environmentally friendly cooling solutions for our region. We will continue to play a crucial role in the development of the infrastructure of the GCC and beyond."
Net profit attributable to the parent increased by 7 per cent to Dhs427.6 million, compared to Dhs400.1 million in 2017. Group revenue increased by 3 per cent to Dhs1,446.9 million, compared to Dhs1,399.4 million last year, while core chilled water revenue increased by 3 per cent to Dhs1,361.3 million, compared to Dhs1,317.3 million in 2017.
EBITDA increased by 10 per cent to Dhs694.2 million, compared to Dhs628.4 million last year. Share of results of associates and joint ventures decreased by 30 per cent to Dhs90.3 million, while it was Dhs128.8 million in 2017, due to the impact of new accounting standards.
Total Group connected capacity across the GCC increased to 1,131,379 RT, with 39,061 RT of new customer connections added and three new plant(s) became fully operational.
Contributed to saving 1.97 billion kilowatt/hour across the GCC - enough energy to power approximately 112,000 homes in the UAE every year. These power savings prevented the release into the atmosphere of 986,000 metric tonnes of carbon dioxide - the equivalent of eliminating the emissions from 214,000 vehicles annually