Tabreed’s net profit soars 62% thanks to booming construction activity
Tabreed, the Middle East’s award-winning district cooling pioneer, has posted a record-breaking annual net profit for the financial year 2005, with an increase of 62% over 2004.
The company’s net profits increased to Dhs. 51.1 million compared to Dhs. 31.6 in 2004.
The UAE-based company, with operations in five countries, generated revenues of Dhs. 400.9 million for the financial year 2005 compared to Dhs. 242.1 million in 2004, posting a 65.5% increase.
The company posted a gross profit of Dhs 149.3 million for 2005, up from Dhs 91.3 million the year before.
Tabreed’s total assets reached Dhs 2,671.6 billion at the end of the year, representing an increase of 62% on 2004. “Tabreed recorded exceptional growth in 2005,” said the company’s Chairman, Mohamed Saif Al Mazrouei. “The company has once more exceeded its growth targets and generated strong total returns for its shareholders. We expect to see this growth continue in 2006 with a number of projects in the pipeline.”
One of the world’s leading companies in district cooling, Tabreed recently launched Saudi Tabreed in partnership with the Kingdom’s A. Abunayyan Group subsidiary AQWA Power and RUSD Bank.
“The launch of Saudi Tabreed marks an important phase in Tabreed’s expansion and gives us an entry into the Kingdom’s important construction market, currently valued by some analysts at US$35 billion,” said Mazrouei. “The GCC construction boom ensures that Tabreed will continue to have a vast market for its services for the foreseeable future.”
Tabreed, last year, signed the company’s biggest cooling services contract in its eight-year history with a 30-year, Dhs 3 billion agreement with the Dubai Municipality to provide district cooling for the entire Dubai Metro project. This project, which comprises 43 metro stations that will require an initial cooling load of 36,000 Tons of Refrigeration (TR) will peak at 350,000 TR when complete.
Tabreed also signed a major agreement with ALDAR Properties covering the company’s upcoming and future properties as well as deals with Abu Dhabi University, Khalidiyah Mall and Abu Dhabi’s Directorate General of Police.
Tabreed is a UAE public joint stock company established in June 1998 and is now one of the world’s largest district cooling utilities. Tabreed provides district cooling services throughout the GCC countries with offices in Dubai, Abu Dhabi, Ras Al Khaimah, Doha, Manama, Khobar and Muscat. The company has been growing at a very rapid pace and has been recently awarded two gold awards by the International District Energy Association in the USA for new customers by the number of buildings it serves and by the cooling load.