Business | General

Tabreed first-quarter profit hit by rising labour costs

Project delivery delays, inflation in labour costs and certain overheads impacted the first quarter net profits of the National Central Cooling Co (Tabreed).

  • Staff Report
  • Published: 23:35 June 1, 2008
  • Gulf News

Dubai: Project delivery delays, inflation in labour costs and certain overheads impacted the first quarter net profits of the National Central Cooling Co (Tabreed).

The company yesterday said its net profits declined to Dh10 million for the first quarter of fiscal 2008 ended March 31, down from Dh21.4 million for the same period last year.

"Tabreed's profits for the quarter in Chilled Water of Dh11 million compared with Dh10.9 million for the same period in 2007 were impacted by high inflation in labour costs, administrative payrolls and certain other expenses and overheads," the company said in a statement.

"Within the manufacturing segment several contracts due to complete in the first quarter were delayed, with profits for the quarter of Dh5.1 million in comparison with Dh11.3 million last year."

Additionally, the company took a negative mark to market against one of its investments, which resulted in a negative cash management result for the quarter.

Tabreed's segmental results showed total revenue of Dh49.1 million generated from the company's core Chilled Water business in comparison with Dh40.3 million for the same quarter in 2007.

The company posted gross profit of Dh66.5 million for the period, up from Dh62.2 million in 2007.

Tabreed's CEO Dany Safi said: "Our first-quarter results have been impacted by several exceptional factors, however within the Chilled Water business this was largely foreseen and we remain on track to achieve our full year budget for the segment and for the group."

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