Tabreed Q2 net rises 9pc as finance costs ease
Dubai, August 11, 2011
Cooling firm Tabreed posted a 9-percent rise in second-quarter net profit helped by a reduction in finance costs and strong performance at its core chilled water business, it said on Thursday.
Tabreed, which received funding earlier this year from state-owned fund Mubadala to restructure debt, said second-quarter net profit rose to Dh43.8 million dirhams ($11.9 million) compared with Dh40.3 million a year-ago.
Results for the quarter benefited from a Dh25 million reduction in financing costs due to the closure of its recapitalisation program in April, the company said in a bourse statement.
Revenue for the quarter rose to Dh286.6 million versus Dh247.7 million for the year earlier period. Chilled water business revenues rose 29 percent to Dh425.6 million for the first half of the year.
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 in a conference call.
In March, the firm secured an extra Dh3.1 billion ($844.2 million) funding from state-owned fund Mubadala, helping it to tackle its debt pile.
Dubai-listed Tabreed, formally called National 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 Al Muhairi as its new chairman in May, replacing Khadem Al Qubaisi who stepped down from the board. -Reuters