Tabreed Q1 net profit up 15pc
Dubai, May 1, 2012
National Central Cooling Company (Tabreed) reported a 15 per cent rise in first quarter profit on Tuesday as operating costs declined by a quarter for its chilled water business.
Tabreed made a net profit of 36.8 million dirhams ($10 million) in the three months to March 31, up from 31.9 million dirhams a year earlier, a company statement said.
Net profit was lifted by a 5 per cent increase in chilled water revenue, and a decline in operating costs of 25 per cent.
Total revenues in the first quarter declined 11 per cent however to 219 million dirhams which the company said was expected as it continues to phase out non-core businesses.
'Due to our continued cost control and improved organisational efficiencies, operating costs declined 25 per cent and operating profit increased 14 per cent compared to the same period last year,' Sujit S Parhar, Tabreed's chief executive said.
'Net finance costs were notably lower reflecting our stable and improved capital structure.'
Tabreed shares are up 160 per cent this year so far, having ended 2011 70 per cent lower. Earnings were announced before the Dubai Financial Market opened for trading. – Reuters