Tabreed, the National Central Cooling Company, realised net profits of Dh2.7 million ($735,121) for fiscal year 2001 against Dh3.1 million earned in 2000 even as total revenues grew considerably, the company reported.
The company's provisional financial report showed gross profits of Dh7.9 million compared with Dh43,207. The company generated Dh9.3 million as net cash from the supply of chilled water and related incomes, its core business operating activity, as well as realising Dh5.7 million during the year from cash deposits to offset the Dh3.8 million loss from operations. Dany Safi, managing director and founder of Tabreed, said that during 2001 the company had made considerable progress in winning new contracts.
Safi explained that because the company's assets had grown considerably, depreciation had gone up to Dh3.88 million (2000: Dh1.19 million) and payables had increased due to a significant increase in operations and capital work in progress.
"Management is extremely confident about the growth outlook for the years ahead," he said.
Capital work in progress had grown to Dh293.39 million from Dh87.02 million in 2000, reflecting the company's investment in new projects. Similarly, plant, furniture and equipment had grown in proportion, having now reached Dh90.44 million which was up from Dh19.30 million in 2000.
The company's bank balances and cash include bank deposits of Dh57.36 million (2000: Dh155.68 million) placed with commercial banks in the UAE.
A number of commercial, residential and military district cooling projects are currently underway across the UAE, including in Abu Dhabi, Al Ain, Ras Al Khaimah and Dubai. Other Tabreed projects are being considered, or are in various stages of negotiations, throughout the UAE and in Saudi Arabia, Kuwait and Qatar.
In the UAE, the Tabreed scheme operating in Al Ain is a good example of how a wide variety of buildings, designated for commercial, governmental or residential use, within a set area can all utilise district cooling. Al Jimi Mall is already connected to the Tabreed plant in the city, and a deal has recently been signed to provide cooling from the plant to the municipality of A1 Ain's new Vegetable and fish Market.
In Dubai, Tabreed is supplying cooling to Tower number 1 Suites. The Military is expected to be Tabreed's primary UAE customer.
The company signed during 1999 three 20-year contracts having an aggregate capital cost of $40.6 million, two of which were with the UAE Armed Forces. In 2001 two further contracts with Zayed Military City were signed, bringing the total number of military projects to four, each for 10,000 tonnes gas-fired installations. If required, the facility offers the opportunity for further extensions to the projects to be offered.
The Zayed Military City scheme has been undertaken on a build, own and operate (BOO) basis and Tabreed is set to run it for a period of 20 years, after which the contract will be subject to renewal.
