Tabreed reports a Q1 net profit of $22.3 million

National Central Cooling Company (Tabreed) has reported a 3 % YOY net profit increase with Dh 82.2 million ($22.3 million) for the first quarter.

UAE based leading international district cooling developer said that it had taken all precautions to ensure constant uninterrupted service for its customers while also embracing industry-leading health and safety practices and sanitization programs to guarantee the safety of its staff during these challenging times.

The Emirati group had recently announced the acquisition of its Downtown Dubai district cooling business in a long-term partnership with global property developer Emaar, to provide up to 235,000 tonnes of refrigeration (RT) of cooling from the largest integrated district cooling scheme in the world to some of Emaar’s most prestigious developments.

On its financial results, Tabreed said the highlights for the three months ended March 31, included:

• A 1% decrease in revenue driven by results from value chain businesses
• Consistent Chilled water revenue in line with the prior year
• Gross margins marginally up compared to prior year at 55 percent
• Reduction in Finance costs due to lower rates
• An increase of 5% in Ebitda to Dh178.2 million

According to the Organization, there was an increase in administrative and other expenses mainly from a provision of Dh 10 million ($2.72 million) on receivables due to impact of Covid-19 offset by cost savings

Management was also able to moderate the threat of the virus by warranting that services were managed with minimal staff interaction and exposure leveraging its state-of-the-art technology and operation philosophy coupled with thorough and regular sanitization of plants and offices.

Tabreed said its energy-efficient services succeeded in preventing the release of 1.23 million tons of carbon dioxide into the atmosphere over the course of 2019 which is equivalent to reducing the emissions from 268,000 vehicles.

“Tabreed’s first-quarter financial results demonstrate the resilience of our operational capabilities, proving that we are still able to deliver essential, efficient and reliable services to our customers as we collectively navigate through these challenging times.”

“We have successfully continued to deliver efficient and cost-effective cooling solutions, minimizing the potential for a disruption to the service through working remotely and safely in cooperation with our highly qualified and dedicated employees,” Mr. Al Qubaisi remarked.

“Our facilities are 100 percent operational and we are taking all possible measures to ensure we maintain this service level while ensuring the health and safety of all that interact with our facilities,” he added.

“We are extremely proud of the swift and effective steps we have been taking to ensure our business continuity and ability to serve the market and our customers during this period of intense market conditions.”

“Now more than ever, it is critical that we make it possible for all customers to continue their operations and help them respond to the unique demands that they are facing,” remarked Mr. Lamki.

“Tabreed’s response in this regard has been strong, and as we align our work processes with the guidelines issued by relevant authorities, and our customers can rest assured that they can continue to count on us to support their businesses with efficient, reliable and effective district cooling solutions,” he added