Tabreed earnings up 30% in first quarter

Dubai: District cooling firm Tabreed, partly owned by Abu Dhabi state fund Mubadala, on Tuesday reported a 30 per cent rise in first-quarter profit, helped by lower finance costs.

The Dubai-listed firm posted a net profit of Dh47.8 million ($13 million) in the first quarter compared to Dh36.8 million in the same period last year, a company statement said.

Tabreed provides cooling systems to residential and commercial properties in the Gulf region, including Dubai’s metro network.

Net finance costs fell by 14 per cent to Dh38.7 million in the quarter due to recapitalisation. Chilled water revenue increased by 5 per cent to Dh202.7 million.

The company secured Dh3.1 billion of financing from Mubadala in March 2011 to help tackle its debt pile. In December, the firm agreed to issue Dh1.13 billion in convertible bonds to Mubadala as part of a recapitalisation plan.