District cooling firm Tabreed, part-owned by Abu Dhabi state fund Mubadala, reported a 35 percent rise in quarterly net profit on Wednesday, helped by growth in its core chilled water business and lower financing costs.
Dubai-listed Tabreed, which designs and operates cooling systems, reported a third-quarter net profit of AED73m (US$19.9m), compared with a profit of AED54.1m a year-ago, Tabreed said in a bourse filing.
Revenue for the quarter rose 5 percent to AED326.4m from AED309.8m in the prior-year period.
Formally known as National Cooling Company, Tabreed provides cooling systems to residential and commercial properties in the Gulf region. The utilities company also provides cooling solutions for Dubai’s metro network.
The firm, in which state fund Mubadala Development Co has a 27.3 percent stake, said profits from its chilled water operations increased by 21 percent in the first nine months ending September 30 to AED255.9m.
It also cut finance costs by 26 percent to AED128.6m during the nine-month period.
Tabreed is among several Gulf firms which has had to restructure its debt after the property market boom ended abruptly in 2009.
In March 2011, the industrial cooling firm secured an extra AED3.1bn funding from Mubadala, helping it to tackle its debt pile.
The firm currently has 59 plants in the UAE and six plants across the Gulf region. Tabreed’s shares have more than doubled this year, outperforming Dubai’s benchmark index.
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