Tabreed quarterly profit rises 2 per cent

Tabreed posted a 2 per cent increase in second quarter net profit as the Abu Dhabi-based district cooling company lowered costs and added more customers.

Net profit attributed to equity holders at Tabreed, in which the Abu Dhabi investment company Mubadala has a stake, rose to Dh92.17 million in the second quarter from Dh90.35m in the year-earlier period, the company said.

The company, which has 69 district cooling plants across the Arabian Gulf region, posted a 5.65 per cent increase in second-quarter revenue to Dh315.9m from Dh299m a year earlier.

Net finance costs dropped by 7 per cent to Dh60.8m in the first half, thanks to the refinancing completed at end of last year. It did not give a breakdown of cost savings for the second quarter.

The company made more than 13,700 refrigerated tonnes of new connections in the first half, bringing the group’s overall capacity to 953,000 refrigerated tonnes. It did not provide figures for the second quarter.

Tabreed also completed the buy-back of 28 per cent of bonds from Mubadala, its largest shareholder, on July 1. It bought back 854 million bonds for Dh1 billion.

“The buy-back will increase earnings per share and reduce annual financing costs,” the chief executive Jasim Husain Thabet said.

Tabreed shares were not traded in Dubai on Thursday.

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