Abu Dhabi-based utility company Tabreed said its net profit for the first half hit Dh94.7 million ($25.7 million), up 25 per cent compared to Dh75.7 million last year, mainly driven by its core chilled water business and lower finance costs.

Announcing its consolidated first half results, Tabreed said its chilled water revenue increased by 5 per cent to Dh444.9 million compared to Dh425.6 million last year.

The UAE utility firm said it had registered a robust operational and financial performance in the first six months mainly boosted by its core chilled water business and lower finance costs.

The chilled water profit from operations increased by 20 per cent to hit Dh155.5 million compared to Dh129.8 million in 2011 as the company generated further value from its economies of scale and enhanced efficiencies, it stated.

Tabreed's Ebitda increased by nine per cent to Dh223 million over Dh204.7 million last year, it added.

Commenting on the results, chairman Waleed Al Mokarrab Al Muhairi said: 'In the first six months, Tabreed delivered strong financial and operational results underpinned by continued cost control, improved efficiencies and a strong performance by the company’s chilled water business.'

'In line with our strategy, we remain focused on growing this segment while delivering sustainable returns and creating long-term value for our stakeholders,' he remarked.

He pointed out that the Tabreed group revenue declined by three per cent to Dh515.7 million from Dh532.2 million in 2011 in line with expectations as the company continued to phase out its non-core value chain businesses.

The net finance costs too decreased by 33 per cent to Dh87.2 million due to the completion of the recapitalization program in 2011, he added.

CEO Sujit Parhar pointed out that the underlying strength of Tabreed's chilled water business was reflected in its first half performance and the company will continue to enhance operational efficiencies and achieve greater yields from its existing plants in 2012.

“Today, Tabreed delivers over 727,000 RT of cooling to customers across the region, and has established itself as the partner of choice for leading government and private organizations in the GCC,” he stated.

According to Parhar, Tabreed currently has 59 plants in the UAE – 52 are wholly-owned and operated by the company and seven are operated through its affiliates and subsidiaries.

The company also has six plants in the Gulf region in Bahrain, Oman, Qatar and Saudi Arabia, which it operates through its affiliates and subsidiaries.-TradeArabia News Service