Dewa's H1 revenue soars to $3.4bn amid big utility demand
DUBAI, August 11, 2023
Dubai Electricity and Water Authority (Dewa) has reported a revenue of AED12.7 billion ($3.4 billion), up 5.4% over last year mainly driven by a growth in demand for electricity, water, cooling services, while its net profit hit AED2.7 billion ($735 million).
Announcing its consolidated financial results for the six-month period ended June 30, 2023, Dewa said
its net profit for the period fell to AED2.7 billion ($735 million) from last year's figures of AED3.3 billion.
Meanwhile, its revenue growth for electricity, water and cooling increased by 5.7%, 3.8% and 4.9% respectively. Dewa’s other portfolio of assets grew their revenue by 7.8%.
By the end of H1, the company’s net cash from operating activities increased by a record AED 837 million to AED5.4 billion, representing a 18.2% increase versus the same period for the last year.
Net finance costs were higher by AED262 million as a result of increase in EIBOR during the last 12 months, and as a result of a reduction in capitalised interest of new IPP projects that have been commissioned.
In addition, depreciation has increased by AED190 million due to new IPP projects that were commissioned, adding to Dewa’s generation capacity, it stated.
Dewa said its first half net profit was impacted as a result of an increase in net finance costs, and depreciation when compared to H1 2022.
On its second quarter results, the Dubai utility said its consolidated revenue increased by 4.1% to AED7.3 billion, driven by an increase in demand for electricity, water and cooling services and an increase in the revenues of Dewa’s other portfolio of assets, while the net profit for period stood at AED1.98 billion.
Dewa pointed out that the demand for power in Q2 reached 14.3 TWh compared to 14.0 TWh for the same period in 2022. Dewa’s second quarter gross heat rate for power was 8,230 BTU / kWh, which is a 4.2 percent improvement compared to the same period in the last year, reflecting higher operational efficiency resulting from the company’s targeted sustainability and environmental efforts.
Demand for water in the second quarter of 2023 reached 35.3 billion imperial gallons (BIG), representing a 4.6% increase.
On the solid performance, MD and CEO Saeed Mohammed Al Tayer said: "Dewa’s continued focus on smart project delivery, innovation and accelerating digital transformation have bolstered our top line results and our operating cash flow performance through the first six months of 2023."
"We are committed to advancing strategic priorities of sustainability focused smart growth, enhanced customer happiness, globally leading operational excellence and attractive capital returns for our shareholders," he noted.
“In line with our strategy, we continue to maintain a robust infrastructure and services to keep pace with rapid developments in Dubai driven by the sustainable economic growth, execution of the ambitious Dubai 2040 Urban Master Plan and the associated increase in population," noted Al Tayer.
"Today we provide world leading services to over 1.18 million customers at the highest standards of availability, reliability, efficiency and safety, and we are committed to future proofing the same," he stated.
Dewa’s strategy is focused on delivering consistent returns, upholding highest Environmental, Social, and Governance (ESG) standards, sustainable growth and compounding of our growth value over time for our investors," added Al Tayer.-TradeArabia News Service
