June 3 (Bloomberg) -- National Central Cooling Co. jumped the most since April after saying it signed a 6 billion dirham ($1.6 billion) contract to supply the United Arab Emirates Armed Forces with air conditioning.
Shares in the company known as Tabreed rose as much as 11 percent to 2.25 dirhams before closing 6.4 percent higher at 2.15 dirhams. The 20-year contract builds on an agreement signed in 2000, it said in a statement posted on the Dubai stock exchange website. The benchmark DFM General Index fell 1.5 percent.
Abu Dhabi-based Tabreed, which designs, builds and operates air conditioning plants, is discussing new projects with the armed forces, it said. The shares have declined 10 percent this year, compared with a 51 percent gain for Dubai’s benchmark index, data compiled by Bloomberg show.
“The stock hasn’t seen any news for a long time,” Hisham Khairy, the Dubai-based head of institutional trade at Mena Corp. Financial Services LLC, said by telephone from the emirate. “They have been one of the biggest laggards and it has been under selling pressure.”
The district cooling company, which had 66 plants in the six-nation Gulf Cooperation Council at the end of March, reported a 22 percent jump in first-quarter profit as it made more than 16,000 refrigerated tons of new connections, according to an April 28 statement.
To contact the reporter on this story: Samuel Potter in Dubai at firstname.lastname@example.org
To contact the editors responsible for this story: Claudia Maedler at email@example.com Stephen Kirkland, Dana El Baltaji