Dubai: The National Central Cooling Company PJSC (Tabreed), the Abu Dhabi-based district cooling utility company, reported a 34 per cent increase in net profits to Dh 182.7 million for 2011, up from Dh136.8 million in 2010. 

Group revenue for the year increased 9 per cent to Dh1.11 billion, up from Dh1.02 billion.

Chilled water revenue for the year increased by 25 per cent to Dh943.8 million, up from Dh753.3 million, while chilled water profit increased 37 per cent to Dh274.4 million, up from Dh200.3 million in 2010. The company's debt to equity ratio decreased to 0.93, compared to 3.15 in 2010. Earnings before interest, tax, debt and amortisation (EBITDA) increased 18 per cent to Dh434.7 million, up from Dh368.2 million, in 2010.

On April 1, 2011, Tabreed successfully completed its recapitalisation program, putting in place a stable capital structure and enabling the company to settle its 06 Sukuk in full upon maturity

In the twelve months ended 31 December 2011, 11 new plants came online during 2011 and 45,800 RT capacity added during the year - an 8 per cent increase from 2010, while 78,115 RT new connections achieved in 2011 - 16 per cent increase from 2010.

It's installed capacity in the UAE has reached 587,325 RT and connected capacity 555,181 RT while the group's installed capacity across the region has reached 749,125 RT and connected capacity 703,176 RT.

Waleed Al Mokarrab Al Muhairi, Tabreed's Chairman, said: "Our full year performance, in particular our revenue growth and significantly increased profitability, demonstrates the success of our strategy of focusing on the chilled water business, improving operational efficiencies and applying stricter cost discipline across the business. Our strategy will remain constant in the year ahead as we complete our build-out program and build upon the notable achievements of 2011.

"Our stakeholders recognize district cooling as a vital utility because of the energy efficient, cost effective and reliable cooling it provides. As the partner of choice for leading institutions, Tabreed will capitalize on future demand for cooling that will be driven by the continued investment in and diversification of the Abu Dhabi and other regional economies."

Tabreed's chilled water division, the key driver for the business, delivered further growth in revenues and profits. Revenues increased 25 per cent to Dh943.8 million while gross profit increased 27 per cent to AED 406 million. Profits from operations registered a 37 per cent increase to Dh274.4 million. EBITDA, an indicator of cash flow generation, increased to Dh401.4 million against Dh296.1 million from the previous year 2010.

Sujit S. Parhar, Tabreed's CEO, said: "As these results demonstrate, Tabreed has a solid fundamental business model driven by its core chilled water business, underpinned by its strict cost discipline and continuously improving organizational efficiencies.

During 2011, we successfully completed the construction of 11 plants, eight for the Dubai Metro Green Line, which has increased our total connected capacity in the UAE to 555,181 RT. With 95 per cent of our total capacity contracted through long-term contracts with customers, Tabreed is now well positioned to continue to deliver sustainable and recurring revenues and profits."