Abu Dhabi: The National Central Cooling Company, Tabreed, said net profit advanced to Dh94.7 million in the first half of 2012 compared to Dh75.7 million for the same period of 2011.

The Abu Dhabi-based district cooling utility company registered an increase of 25 per cent in its profits for The first half. The company attributed the hike to “robust operational and financial performance in The first half, 2012 driven by its core chilled water business and lower finance costs.

Waleed Al Mokarrab Al Muhairi, Tabreed’s Chairman, said: “In the first six months of 2012, Tabreed delivered strong financial and operational results underpinned by continued cost control, improved efficiencies and a strong performance by the company’s chilled water business.”

“In line with our strategy, we remain focused on growing this segment while delivering sustainable returns and creating long-term value for our stakeholders,” said Al Muhairi.

Waddah Taha, Chief analyst and economist at Zaarouni Group, told Gulf News: “The company has come out of a disastrous situation. Before 2010, the company was passing through bad financial conditions.

“The restructuring process, which ended in April 2011, has played a pivotal role in turning the company into a profitable venture and it seems that the company right now is moving in the right direction,” Taha added.

He pointed out that the lowering of financing costs “is a smart move and this cannot be achieved without hard work.

“Today’s book value of Tabreed share in the market was Dh1.29, up by 2.38 per cent,” clarified Taha. “Nowadays, the company delivers over 749.1125 RT of cooling to customers in the GCC region compared to 587.325 RT in 2011, up by 8 per cent. The company has also opened 11 new cooling districts in 2011,” explained Taha.

Today, Tabreed delivers over 727,000 RT of cooling to customers across the region, and has established itself as the partner of choice for leading government and private organizations in the GCC,

The company said: “Chilled water revenue increased by 5 per cent to Dh444.9 million compared to Dh425.6 million for The first half, 2011.

“Chilled water profit from operations increased by 20 per cent to Dh155.5 million in The first half, 2012 compared to Dh129.8 million in The first half 2011as the company generated further value from its economies of scale and enhanced efficiencies,” said the statement.

Sujit Parhar, Tabreed’s CEO, highlighted: “The underlying strength of our chilled water business is reflected in our first half performance and as we look ahead to the rest of 2012, the company will continue to enhance operational efficiencies and achieve greater yields from its existing plants.”

On the other hand, the group’ revenue descended by 3 per cent to Dh515.7 million compared to Dh532.2 million in The first half, 2011 amidst expectations that the company would proceed with phasing out its non-core value chain businesses.

The statement showed that net finance costs decreased by 33 per cent to Dh87.2 million in The first half 2012 compared to Dh129.5 million for the same period 2012 due to the completion of the recapitalization program in 2011.

Tabreed currently has 59 plants in the UAE, 52 are wholly-owned and operated by the company and seven are operated through its affiliates and subsidiaries. The company also has six plants in Bahrain, Oman, Qatar and Saudi Arabia.