National Central Cooling Company PJSC (‘Tabreed’), the Abu Dhabi-based utility company, today announced that it has received regulatory approval from the Ministry of the Economy and the Emirates Securities and Commodities Authority to reduce the Company’s share capital through the cancellation of 970,000,000 shares.  The cancellation of shares will be on a pro-rata basis at a ratio of 5:1 – in effect a ‘reverse share-split’ – and applies to all Tabreed shareholders. Each shareholder will retain one share for every five original shares it holds. The remaining shares will be cancelled.After the share cancellation this evening, Thursday 9th December 2010, the percentage share of Tabreed held by each shareholder will be the same as before – subject only to minor adjustments as fractional shares will not been issued. The new shares will start trading on Sunday 12th December 2010 on the Dubai Financial Market.The cancellation of shares through a capital reduction is a key component of Tabreed’s recapitalization program that was approved by shareholders at the Company’s EGA on 30th May 2010.  The capital reduction is intended to raise Tabreed’s share price above 1 AED and will enable Tabreed to raise new equity capital, when agreed, in the future.

Steady Improvement Continues As Chilled Water Business Generates Strong Revenues and ProfitNational Central Cooling Company PJSC (‘Tabreed’), the Abu Dhabi-based utility company, today released its third quarter consolidated financial results.  For the nine months ended 30 September 2010, total revenue increased by 25 per cent to AED 710.9 million and net profit increased by 74 per cent to AED 123.2 million over the same period in 2009.  Excluding minority interests, Tabreed’s share of profits was AED 115.7 million compared to AED 53.7 million in the previous year.  These results build upon Tabreed’s strong growth in the first half of 2010 as the Company makes progress towards achieving its strategic goals, particularly refocusing the business on its core business of chilled water.Financial Highlights – Nine months ended 30 September 2010Total revenue increased by 25 per cent to AED 710.9 million, compared to AED 570.7 million in the same period in 2009Gross profit increased by 28 per cent to AED 332.7 million, compared to AED 260.1 million in the same period in 2009Net profit increased by 74 per cent to AED 123.2 million, compared to AED 70.9 million in the same period in 2009Chilled water revenue for the period was AED 496.5 million, a 92 per cent increase over the same period in 2009.Basic and diluted earnings per share doubled to AED 0.06 per share compared to the same period in 2009.Khaled Al Qubaisi, Tabreed’s Managing Director said:“We are pleased to see continued improvements in the Company’s performance as demonstrated in the results announced today and in prior quarterly results for the year. The changes we put in place in 2009 to improve performance, increase profitability and maximize returns are being demonstrated this year and enabling us to generate stronger returns.”Sujit S. Parhar, Tabreed’s CEO, said:“Our focus over the past 18 months has been on our core business of chilled water, and today’s results demonstrate improved operational efficiencies and performance.  Tabreed now operates 49 district cooling plants, and has a further 11 plant construction projects. ”Third Quarter 2010 Highlights:Following the completion of five new plants and two plant expansions in the third quarter of 2010, 101,275 TR of gross capacity came online this quarter.  This brings Tabreed’s total gross installed cooling capacity to 541,525 TR across 49 plants.  The five plants and two plant expansions added in the third quarter were:Zayed Military City  – 10,000 TRShams  – 10,000 TRRaha Beach – 45,000 TRFujairah Naval Base – 4,400 TRNew Souk, Abu Dhabi – 15,000 TRDubai plant expansion – 9,375 TRRas Al Kaimah plant expansion – 7,500 TRFollowing completion of these plants, Tabreed has just three plants and two expansions under construction, though contracts are now being awarded by Tabreed to build eight new plants for the Dubai Metro Green Line.Chilled WaterTabreed’s core business of chilled water produced revenues of AED 496.5 million, compared to AED 258.5 million in the same period in 2009.  This performance was driven by new plants and plant expansion coming online.  Gross profit increased to AED 236.3 million from AED 126.1 in the same period the year before.ContractingThe Company’s contracting segment recorded revenues of AED 134.4 million, compared to AED 137.8 million over the same period in 2009, with gross profit of AED 28.2 million compared to AED 32.9 million in the first nine months of the previous year.  Tabreed’s wholly owned subsidiary, Gulf Energy Systems, was the biggest contributor to the results reflecting further progress with the Sowwah Island and Shams projects.ManufacturingTabreed’s manufacturing segment reported revenues of AED 64.9 million compared to AED 129.9 million in the same period in 2009, while gross profit fell to AED 18.7 million compared to AED 45.3 million in the same period of 2009.  This decline was due to reducing order books and an increase in competition at Tabreed’s 60 per cent owned subsidiary, Emirates Pre-insulated Pipes Industries.ServicesTabreed’s services segment, which is involved in the design and supervision of building electrical and mechanical works, reported revenues of AED 58.2 million compared to AED 65.2 million in the same period in 2009, while gross profit fell to AED 49 million compared to AED 58.7 million in the same period in 2009.  The change reflects the regional real estate slowdown that affected the services division, which includes Ian Banham & Associates, l2l and Cooltech.

Tabreed issues second quarter 2010 consolidated financial results chilled water business drives strong profit growth.National Central Cooling Company PJSC (‘Tabreed’), the Abu Dhabi-based utility company, today released its second quarter consolidated financial results.  For the six months ended 30 June 2010, total revenue increased by 16 per cent to AED 432.3 million and net profit increased by 83 per cent to AED 86.8 million over the same period in 2009.  Excluding minority interests, Tabreed’s share of profits was AED 80.7 million compared to AED 30.1 million in the previous year.  The results were driven by strong growth in the Company’s core business of chilled water as new plants and customers came online.Financial Highlights – Six months ended 30 June 2010Total revenue increased by 16 per cent to AED 432.3 million, compared to AED 373.8 million in the same period in 2009Gross profit increased by 16 per cent to AED 197.5 million, compared to AED 170.9 million in the same period in 2009Net profit increased by 83 per cent to AED 86.8 million, compared to AED 47.4 million in the same period in 2009 reflecting certain non-cash finance gains associated with the Company’s 2008 Convertible SukukExcluding these non-cash finance gains net profits increased by 3%Chilled water revenue for the period was AED 285.3 million, a 94 per cent increase over the same period in 2009.  This is attributable to an increase in chilled water sales as new plants and customers came onlineBasic and diluted earnings per share doubled to AED 0.04 per shareSujit S. Parhar, Tabreed’s CEO, said:“Tabreed’s focus on business fundamentals and the ongoing recapitalization program is repositioning the Company for growth.  Our strategy has been to focus on the core business of chilled water, and these robust first half results reflect growth in the Company’s chilled water business and improved operational efficiencies. Going forward, these factors, combined with a diversified customer base, long-term contracts, a stable cost structure and strengthened corporate governance, will provide the foundation for continued growth.”Khaled Al Qubaisi, Tabreed’s Managing Director said:“The results of the first six months of 2010 demonstrate the hard work of everyone at Tabreed, and the improvements made by the management team under the direction and supervision of the Board.  We will continue to build the platform to achieve the Company’s objectives of improving performance, increasing profitability and maximizing returns.  Completing our recapitalization program will give Tabreed the right balance sheet for growth, and today’s announcement towards the capital reduction is an important step in this process.  Tabreed remains a pioneer within the district cooling industry, able to offer bespoke solutions to the often complex cooling requirements of our customers.”Second Quarter 2010 Highlights:Following the addition of four new plants in the first quarter of 2010, a further four plants with a combined capacity of 27,525 TR were added in the second quarter 2010. This brings Tabreed’s total installed cooling capacity to 449,625 (gross) TR across 44 plants, compared with 34 plants and a cooling capacity of 352,100 TR a year ago.  The four plants added in the second quarter were:Al Kifaf – 10,000 TRRashidiya – 7,500 TRJebel Ali – Jumeirah – 5,626 TRJebel Ali Industrial – 4,000 TRA further 8 plants are under construction along with 2 planned expansions, of which 5 plants and 1 expansion are expected to come online in 2010. The capacity addition for 2010 is estimated at 148,300 (gross) TR.Chilled WaterTabreed’s core business of chilled water produced revenues of AED 285.3 million, compared to AED 147.2 million in the same period in 2009.  This performance was driven by new plants and new customers coming online.  Gross profit increased to AED 130.1 million from AED 75.6 in the same period the year before.ContractingThe Company’s contracting segment recorded revenues of AED 104.7 million, compared to AED 93.7 million over the same period in 2009, with gross profit of AED 22.7 million compared to AED 14.6 million in the first six months of the previous year.  Tabreed’s wholly owned subsidiary, Gulf Energy Systems, was the biggest contributor to the results reflecting further progress with the Sowwah Island and Shams projects.ManufacturingTabreed’s manufacturing segment reported revenues of AED 41.5 million compared to AED 116.7 million in the same period in 2009, while gross profit fell to AED 13.2 million compared to AED 41.9 million in H1 2009.  This decline was due to reducing order books at Tabreed’s 60 per cent owned subsidiary, Emirates Pre-insulated Pipes Industries.ServicesTabreed’s services segment, which is involved in the design and supervision of building electrical and mechanical works, reported revenues of AED 38.5 million compared to AED 45.4 million in the same period in 2009, while gross profit fell to AED 32.6 million compared to AED 40.1 million in the first half of 2009.  The change reflects the regional real estate slowdown that affected the services division, which includes Ian Banham & Associates, l2l and Cooltech.Update on Recapitalization Program:Since Tabreed’s shareholders approved a recapitalization program for Tabreed on 30th May 2010, the Company has continued to make progress on the program. Tabreed announced today its intention, subject to regulatory approval, to reduce the Company’s share capital through the cancellation of approximately 970,000,000 shares.  The cancellation of shares will be on a pro-rata basis at a ratio of 5:1.  Each shareholder will retain one share for every five shares it holds, and the remaining shares will be cancelled.  The percentage holding in the Company of each shareholder will be the same after the capital reduction as before, subject only to minor adjustments as fractional shares will not be issued.The proposed cancellation of shares through a capital reduction is a key component of Tabreed’s recapitalization program. Tabreed has submitted the capital reduction proposal to the Emirates Securities and Commodities Authority for approval and will provide further updates to shareholders in due course.

Un-audited full-year results for 2009 announcedHighlights:Total revenues for 2009: AED 742 million (2008: AED 735 million)Gross profit was AED 291 million; after impairments, net loss (Tabreed’s share) was AED 1,118 million for 2009Revenue from the core chilled water business rose 29 % and gross profit 31 % over 2008National Central Cooling Company PJSC (‘Tabreed’), the Abu Dhabi-based utility company, released its un-audited 2009 year-end financial results today. The results revealed that for the twelve months ended 31 December 2009, total revenues were AED 742 million – a slight increase over 2008 figures. Tabreed’s gross profit was AED 291 million in 2009. However, after finance costs, results from associated companies, a non-cash impairment charge and other items, Tabreed recorded a loss of AED 1,118 million for the year. This compares with a profit of AED 73 million in 2008.Due to the challenges facing Tabreed, the Board of Directors appointed a new management team in mid-2009 which comprised of seasoned utility sector experts. The team undertook a comprehensive review of Tabreed’s project portfolio, contracts, business plan, financial performance, liquidity position and overall capital structure. Based on this review, the management team recommended, and the Board of Directors approved:Declaring a non-cash impairment charge of AED 1,161 million for 2009 to reflect the longterm value of projects in light of the current difficult economic climate; andA short-term financing facility from Mubadala Development Company PJSC (‘Mubadala’) of AED 1.3 billion to provide funding while Tabreed completes the recapitalization program. As part of the recapitalization program, this senior-debt financing will be available until the end of 2010 and may be converted to long-term capital.The Board also approved submitting to the shareholders a recapitalization plan to achieve a stable longterm financial profile and capital structure, the elements of which include:Entering into discussions with strategic investors to provide long-term capital necessary to support the development of the business. Options for new capital include a private placement and/or public offering; andProactively engaging with creditors to support the recapitalization.By mid-April 2010 the Board intends to call for an Extraordinary General Assembly (EGA) of the shareholders to vote on resolutions authorizing the Board to conclude a recapitalization of the company through one or more of: a capital reduction, issuance of new capital raising instruments and arrangements with creditors, banks and Sukuk holders.Tabreed will continue to liaise closely with SCA throughout the recapitalization program.Tabreed Board Chairman, Khadem Al Qubaisi commented: “Tabreed’s Board of Directors requested a strategic review in order to understand the challenges facing the company’s finances and business model. Such a review was essential in the wake of the economic downturn, which hit Tabreed at the peak of an unprecedented growth program. In parallel with the review, the Board tasked the new management team with the immediate implementation of corporate governance and process controls with a priority of achieving efficiencies both in the business model and cost structure. The recommendations of the Board announced today will help ensure that Tabreed can continue to support infrastructure needs as well as provide long term competitive returns for investors.”Tabreed CEO, Sujit S. Parhar commented: “Over the course of 2009, we initiated a process of reviewing the business model and cost structure which has led to re-engineering of the company so we could take decisive action to address the challenges facing the business.”“In addition to today’s announcement, the review has led us to focus on value-engineering future plants and networks. Our priority is to work according to strict needs-assessments, best-in-class design, delivery and operations and ensure firm commitments from customers in advance of construction as well as to secure a long-term financing structure for the business. The changes we have made in these difficult times are designed to better position Tabreed to deliver consistent returns for its shareholders over time. Completion of the recapitalization of Tabreed will allow us to focus on growing our core business and safeguarding our quality assets. The short-term financing from Mubadala will allow us to continue to operate through the recapitalization program.”Un-audited 2009 Results and Corporate Highlights:Revenues from the company’s core business of chilled water increased 29 per cent in 2009 as three new plants (UAE University at Al Ain, Yas Island and T-7) came online during the year and several new customers were connected. Total billed capacity for chilled water in 2009 was 339,572 tonnes, an increase of 65,371 tonnes over 2008.Three new cooling plants came online in 2009, bringing Tabreed’s total installed cooling capacity to 395,100 tonnes across 36 plants. In addition, 16 cooling plants and two plant expansions were under construction as of 31 December 2009, of which 13 plants and one plant expansion are expected to come online in 2010 adding a further 148,300 tonnes of cooling capacity.Contracting revenues in 2009 derived from Tabreed’s 100 per cent owned contracting subsidiary Gulf Energy Systems, increased by 38 per cent over 2008, due to major piping network contracts including Sowah Island and Reem Island.Revenues from the company’s building services division which includes Ian Banham & Associates, I2I and Cooltech declined by 46 per cent in 2009 over 2008 largely due to the regional real estate slowdown.The results announced today are un-audited and as such are subject to change until the audit is completed.

National Central Cooling Company PJSC (‘Tabreed’), the Abu Dhabi based utility company, today announced that the Company’s shareholders voted in favor of a series of resolutions presented by the Board of Directors that will lay the foundations for Tabreed’s recapitalization. The approval by shareholders at Tabreed’s Extraordinary General Assembly (EGA) held on May 30th gives the Board of Directors the authority to proceed with the recapitalization program. The Company will announce further details once the Board of Directors approves the details of the program within the parameters approved by the shareholders. Tabreed Board Chairman, Khadem Al Qubaisi commented:“The resolutions approved by our shareholders at the EGA provide a strong vote of confidence and will enable the Board of Directors to structure a recapitalization program that will transform Tabreed and provide for its long-term success. The Company’s viability and potential have been underscored by its strong 2010 first quarter results. With today’s positive vote, the Board strongly believes that the elements of success are aligning, permitting Tabreed to deliver long-term competitive returns for investors, play a key role in meeting the infrastructure needs of Abu Dhabi and continue to lead the region’s district cooling industry.” Tabreed CEO, Sujit S. Parhar commented:“Yesterday’s positive vote by the shareholders in favor of the continuation of the Company and the recapitalization program enables us to progress the positive dialogue we have had with our various stakeholders. We are confident that we can successfully implement the recapitalization program.”

Chilled water revenue more than doubles and recapitalization program progressesNational 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 2009Gross profit increased 11 per cent to AED 88.9 million compared to AED 80.2 million in 2009Net 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 SukukHowever, 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 businessChilled 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 2010Sujit 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 WaterTabreed’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.ContractingThe 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.ManufacturingTabreed’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 millionServicesTabreed’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.”