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UAE Tabreed’s Q4 net profit more than doubles
UAE utility firm Tabreed is bullish on growth this year with its projects fully funded, its CEO said on Wednesday, after posting fourth-quarter results which more than doubled from the previous year.
February 1, 2012 12:57 by Reuters
Dubai-listed Tabreed, which received funding from state-owned fund Mubadala to restructure debt last year, saw quarterly profit rise to 52.9 million dirhams ($14.40 million) from 21.1 million dirhams year-ago, according to Reuters calculations.
Profit growth was driven by strong performance at its core chilled water business and an increase in total capacity.
“2012 is expected to be similar if not better. You will see the full impact of new customers, new connections of 2011,” Sujit Parhar, chief executive of Tabreed told Reuters in a phone interview.
Reuters calculated the fourth quarter profit from previous financial statements. The company reported a net profit of 129.8 million dirhams for the nine-month period ending Sept. 30, 2011.
Tabreed’s full-year net profit rose 34 percent to 182.7 million dirhams, the company said in a statement. Group revenues rose 9 percent to 1.1 billion dirhams, with its main chilled water division accounting for 943.8 million dirhams of the overall revenues.
The company said it added 11 plants during 2011 and an additional 8 percent in overall capacity.
Tabreed is among several Gulf companies which has had 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.
In March 2011, Tabreed secured an extra 3.1 billion dirhams funding from state fund Mubadala, helping it to tackle its debt pile.
Asked about the capital expenditure for 2012, Parhar said the firm’s obligations are fully funded including the elements of new plants envisaged this year.
“There is nothing that we envisage to go to the market in the near term,” he said.
Its debt-to-equity ratio stood at 0.93 percent at the end of 2011, compared with 3.15 percent at the end of the previous year.
Tabreed’s first plant in Saudi Arabia will be completed in the second half of this year, Parhar said. It also operates plants in Bahrain, Oman and Qatar.
Mubadala currently owns 27.3 percent of Tabreed.
Tabreed shares were down 0.6 percent on the Dubai bourse at 0950 GMT. They have risen 9.5 percent year-to-date, having dropped 60 percent in the last year, according to Reuters data. ($1 = 3.6730 UAE dirhams) (Additional reporting by Dinesh Nair; Editing by David French)