National Central Cooling Co., the United Arab Emirates utility known as Tabreed, said second-quarter profit rose 9 percent as chilled water sales grew.
Net income advanced to 43.8 million dirhams ($12 million) from 40.25 million dirhams, Chief Financial Officer Adrian Kershaw said in a conference call with reporters today. EFG-Hermes Holding SAE estimated a profit of 30 million dirhams, according to data compiled by Bloomberg.
Tabreed, which builds and operates cooling systems, said in April it completed a recapitalization program by refinancing 2.63 billion dirhams of debt and obtaining as much as 3.1 billion dirhams of long-term capital from Abu Dubai government-owned Mubadala Development Co. The company repaid a 735 million-dirham sukuk in July.
“Our strategy of developing the business for the longer term by focusing on the core business of chilled water is paying off,” Chief Executive Officer Sujit Parhar said in an e-mailed statement. “This business segment has contributed over 90 percent of the total earnings before interest, taxes, depreciation, and amortization in first half.”
First-half revenue rose 14 percent to 532.2 million dirhams, while sales of chilled water increased 29 percent to 425.6 million, the company said.
Tabreed has no need to raise any debt in the near future and a 1.4 billion-dirham bridging loan is available to cover the rest of its capital expenditure, Kershaw said.
The shares rose 0.6 percent to 82 fils in Dubai yesterday, giving the company a market value of 540 million dirhams. The stock has lost 51 percent this year compared with a 10.4 percent drop in the benchmark Dubai Financial Market General Index.