UAE Cooling Firm Tabreed Q1 Net Up 15 Pct

UAE Cooling Firm Tabreed Q1 Net Up 15 Pct

National Central Cooling Company (Tabreed) reported a 15 percent rise in first quarter profit on Tuesday as operating costs declined by a quarter for its chilled water business.

May 1, 2012 9:42 by kippreport

National Central Cooling Company (Tabreed) reported a 15 percent 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 five percent increase in chilled water revenue, and a decline in operating costs of 25 percent. Total revenues in the first quarter declined 11 percent 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 ent and operating profit increased 14 percent 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 percent this year so far, having ended 2011 70 percent lower. Earnings were announced before the Dubai Financial Market opened for trading.

(Reporting by Rachna Uppal)