Abu Dhabi's Tabreed 1Q Net Pft Up On Lower Costs, Cheaper Funding

Tuesday, May 01, 2012

DUBAI (Zawya Dow Jones)--District cooling firm Tabreed (TABREED.DFM) on Tuesday reported a 15% rise in first-quarter net profit despite a slowdown in overall revenues as the company cut costs and accessed cheaper funding.

Tabreed, which was restructured last year following the regional economic downturn, said net profit for the quarter jumped 15% to 36.8 million U.A.E. dirhams ($10 million), from AED31.9 million.

"Net finance costs were notably lower reflecting our stable and improved capital structure," said Tabreed chief executive Sujit Parhar in an emailed statement. He added operating costs declined 25%.

Tabreed's revenue fell 11% to AED219 million as it continues to shift its focus to chilled water, away from non-core activities. Chilled water revenue edged up 5% to AED193.2 million.

Tabreed currently has 59 plants in the United Arab Emirates and some projects in Bahrain, Oman, Qatar and Saudi Arabia.

The company's shares closed 6.5% lower on Sunday and didn't trade on Monday.

-By Nicolas Parasie, Dow Jones Newswires, +9714 446 1681, nicolas.parasie@dowjones.com

(END) Dow Jones Newswires

01-05-12 0600GMT