69WK Euro.bk. 31

 

TIDM69WK 
 
RNS Number : 7576K 
Tabreed 08 Financing Corporation 
26 April 2010 
 

26 April 2010 
For Immediate Release 
 
                   TABREED REPORTS SOLID FIRST QUARTER PROFIT 
Chilled water revenue more than doubles and recapitalization program progresses 
 
National Central Cooling Company PJSC ('Tabreed'), the Abu Dhabi-based utility 
company, released its first quarter 2010 consolidated financial results today. 
For the three months ending 31st March 2010, total revenue was AED 184.6 million 
- broadly similar to the corresponding period in 2009. However, net profits more 
than doubled over the same period in 2009, from AED 21.7 million in 2009 to AED 
43.8 million in 2010. Excluding minority interests, Tabreed's share of profits 
was AED 40.4 million compared to AED 10.8 million in the previous year. 
 
Financial Highlights - First Quarter Ending 31 March 2010: 
·     Total revenue was AED 184.6 million compared to AED 189.7 million in the 
same period in 2009 
·     Gross profit increased 11 per cent to AED 88.9 million compared to AED 
80.2 million in 2009 
·     Net profit doubled for the first quarter to AED 43.8 million compared to 
AED 21.7 million in the same period in 2009, in part reflecting certain non-cash 
finance gains associated with the Company's 2008 Convertible Sukuk 
·     However, excluding these non-cash finance gains, underlying net profits 
increased 15 per cent off the back of strong growth in the Company's core 
chilled water business 
·     Chilled water revenue for the period was AED 117.1 million, a 91 per cent 
increase over the same period in 2009, as new plants and customers came on line. 
Profits more than doubled to AED 22.8 million and margins improved from 18 per 
cent to 20 per cent. 
·     Basic and diluted earnings per share attributable to ordinary equity 
holders of the parent increased from AED 0.01 in 2009 to AED 0.02 in 2010 
 
Sujit S. Parhar, Tabreed CEO said: 
"The first quarter 2010 results demonstrate the significant progress we have 
achieved to date in reengineering the business and implementing corporate 
governance and process controls.   We have a strong core business of chilled 
water and a steady pipeline of new plants coming on stream. We will continue to 
focus on improving operations and actively managing facilities.  We acknowledge 
the challenges facing the business in the year ahead and those associated with 
our recapitalization process, but we are confident in the long-term prospects 
for the Company." 
 
Steve Ridlington, Tabreed CFO added: 
"In addition to operational improvements, we have also taken steps to implement 
a more rigorous financial discipline and focus on efficiency for our business, 
both of which are evident in the results announced today.  Our efforts have 
translated into the best first quarter results in the Company's history." 
 
First Quarter 2010 Highlights: 
During the first quarter 2010, Tabreed added four new plants to its portfolio, 
adding 27,000 TR of capacity and bringing Tabreed's total installed cooling 
capacity to 422,100 TR across 40 plants. 
 
Chilled Water 
Tabreed's core business of chilled water recorded sales of AED 117.1 million, an 
increase of 91 per cent over the same period last year as a result of three new 
plants coming online in 2009 and four new plants coming online in the first 
quarter of 2010. Profits more than doubled - up 109 per cent to AED 22.8 
million. Margins for the chilled water business improved from 18 per cent to 20 
per cent reflecting efficiency improvements during the first quarter. 
 
Contracting 
The Company's contracting segment recorded sales of AED 36.1 million, an 
increase of 37 per cent over the same period last year. Profits for the segment 
were AED 15.6 million. Tabreed's wholly owned subsidiary, Gulf Energy Systems 
(GES), was the biggest contributor to the strong results, particularly 
reflecting GES commissioning the chilled water network on Al Reem Island and 
signing AED 60 million of new orders for the Sowwah Island network project. 
 
Manufacturing 
Tabreed's manufacturing segment reported sales of AED 15.6 million, a 
significant decline from AED 81.4 million for the first quarter 2009, due to a 
significantly reduced order book. During the quarter Emirates Pre-insulated 
Piping Industries was awarded three new projects, valued at approximately AED 25 
million, which are expected to be completed by the second quarter of 2010. 
Profits for the manufacturing segment were AED 0.7 million 
 
Services 
Tabreed's services segment, which is involved in the design and supervision of 
building electrical and mechanical works, reported sales of AED 15.9 million - 
down 23 per cent over the same period in 2009, reflecting reduced order books 
from the slowdown in the economy. Profits for the segment were AED 5.5 million - 
unchanged over the same quarter in 2009. 
 
As of 31st March 2010, Tabreed's total installed cooling capacity is 422,100 
tons across 40 district cooling plants. The Company expects nine  further plants 
to come on stream in the remainder of 2010. 
 
Update on Recapitalization Program: 
On 8th March 2010 Tabreed announced its unaudited full-year 2009 results and its 
intention to submit for Tabreed shareholders' approval a recapitalization 
program designed to allow the Company to achieve a stable long-term financial 
profile and capital structure.  Since that announcement there have been positive 
discussions with Tabreed's main stakeholders.  Shareholders will decide on 
providing the Board the authority to move forward with a recapitalization 
program at the April 28th EGA.  If no quorum is present on April 28th, the EGA 
will be convened on May 30th. 
 
Following a review of alternatives with respect to the annual distribution on 
its convertible Ijara 08 Sukuk, Tabreed intends to defer making this payment on 
May 19th.  Deferring the annual distribution is consistent with the objectives 
of the recapitalization proposal that will be decided upon by Tabreed's 
shareholders and reflects the subordinated and equity-like nature of the 08 
Sukuk.  Mubadala Development Company and ACWA Holdings, who together represent a 
majority of 08 Sukuk holders, have expressed their support for Tabreed's 
decision.  Tabreed intends to propose amendments to the terms of the 08 Sukuk in 
due course in connection with its broader recapitalization program that Tabreed 
is targeting for completion in Q4 2010. 
 
Khaled Al Qubaisi, Tabreed's Managing Director, said: 
"While we are very pleased with the first quarter results, which reflect the 
hard work of the management team under the direction and supervision of the 
Board, we recognize that there are challenges that face the business in the year 
ahead.  We are confident, however, that the improvements in the Company and the 
way its business activities are conducted provide a strong platform to achieve 
the Company's objectives of improving performance, increasing profitability and 
maximizing returns.   The initial discussions we have had with key stakeholders 
in respect of the recapitalization of the Company is positive and encouraging. 
The support from major 08 Sukuk holders for the Company's decision to defer the 
May 19th payment is a strong endorsement of the steps being taken to complete 
the recapitalization process." 
 
 
                                    - Ends - 
 
For more information: 
Farah Ibrahim 
TRACCS 
Tel: +971 4 3672530 
TRACCS 24/7 Media Hotline: +97150 9448389 
Email: farah.ibrahim@traccs.net 
 
Ross Bethell, Tabreed Corporate Communications Director 
rbethell@tabreed.com 
 
About Tabreed 
Tabreed is an Abu Dhabi-based utility company that caters to the ever-growing 
demand for cost-effective, environment-friendly and efficient year-round cooling 
solutions in the Middle East. Founded in June 1998 and listed on the Dubai 
Financial Market, Tabreed is the largest district cooling provider in the world 
delivering sustainable long-term returns for its shareholders and comfort for 
all of its customers. Tabreed currently owns and operates 40 district cooling 
plants, and joint-ventures and subsidiaries has operations in Bahrain and Qatar, 
and has development plans in Oman and Saudi Arabia. Tabreed is an integral part 
of the region's infrastructure growth, providing cooling solutions to a 
wide-variety of residential, commercial and military communities. 
 
For more information please visit www.tabreed.com 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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