Cooling firm says performance boosted by reduction in finance cost, rise in sales of water business
Cooling firm Tabreed posted a nine percent rise in second-quarter net profit helped by a reduction in finance costs and increased sales at its core chilled water business, it has said.
Tabreed, which received funding earlier this year from state-owned fund Mubadala to restructure debt, said second-quarter net profit rose to AED43.8 million ($11.9 million) compared with AED40.3 million a year-ago.
Results for the quarter benefited from a AED25 million reduction in financing costs due to the closure of its recapitalisation programme in April, the firm said in a statement.
Revenue for the quarter rose to AED286.6 million versus AED247.7 million for the year earlier period.
Chilled water business revenues rose 29 percent to AED425.6 million for the first half of the year, Tabreed said.
The company, which repaid a $200 million Islamic bond in July, expects to complete 10 additional cooling plants by the end of the year, chief executive Sujit Parhar said on a conference call.
In March, the firm secured an extra AED3.1 billion ($844.2 million) funding from state-owned fund Mubadala, helping it to tackle its debt pile.
Dubai-listed Tabreed, formally called National Central Cooling Company, is among several Gulf companies which has to restructure its debt after an economic boom, fuelled by record-high oil prices and easy credit, ended abruptly and caused a property market crash.
It appointed Mubadala's chief operating officer Waleed al Muhairi as its new chairman in May, replacing Khadem Al Qubaisi who stepped down from the board.
Tabreed shares have lost over 50 percent of their value year-to-date.