Dewa announces revenue of Dhs5.068 billion for 1st quarter

Dubai Electricity and Water Authority (Dewa) on Friday reported its first-quarter 2022 financial results, recording revenues of Dhs5.068 billion and net profit of Dhs691 million.

Dewa’s first-quarter revenue increased by 15 per cent to Dhs5.068 billion, driven by an increase in consumption across all sectors and the transition to a normalised tariff structure at the beginning of this year.

Rise in hospitality and commercial activities in Dubai, in part due to the easing of Covid-related restrictions worldwide, has contributed to the robust demand growth.

Compared to the first quarter of 2021, electricity revenue is up 17.5 per cent, water revenue is up 20.2 per cent, and district cooling revenue is up 17.6 per cent in the first quarter of 2022.

Dewa’s consolidated gross fixed assets grew by Dhs2.8 billion to Dhs204.2 billion as of March 31, 2022 compared to Dhs201.4 billion on Dec.31, 2021.

“Dewa meets the increasing demand for electricity and water in Dubai according to the highest standards of reliability, efficiency and quality, thanks to the best-in-class infrastructure and sound governance system across the Group.”

“The strong first quarterly result is a testament to our resilient operating business model and continues a track record of consistent growth,” said Saeed Mohammed Al Tayer, MD and CEO of Dewa.

He added, “We have ample liquidity on our Balance sheet to allow us to pursue growth opportunities. Dewa will continue to make disciplined capital investments, achieving cost savings while growing our footprint and maintaining a high level of safety, quality and customer happiness.”

“We are committed to creating incremental shareholder value and to providing dividend visibility to our shareholders.”

Dewa currently provides its services to 3.5 million Dubai residents and the Emirate’s active daytime population of over 4.7 million.

These numbers are expected to grow to 5.8 million and 7.8 million, respectively, by 2040.

Dewa’s growth plans are aligned with Dubai’s 2040 Urban Master Plan, Dubai’s Clean Energy Strategy 2050 and Dubai’s Net Zero Carbon Emissions Strategy 2050, which aims to provide 100 per cent of Dubai’s energy production capacity from clean energy sources by 2050. In April of 2022, Dewa launched the “Dubai EV Community Hub” website to increase electric vehicle (EV) adoption by centralising information regarding EV developments in Dubai. This is part of Dewa’s efforts to encourage the use of sustainable transport and consolidate Dubai’s position as a global capital for a green economy and sustainable development.

On Oct.27, 2021, Empower signed Heads of Terms (HOTs) with Dubai Airports City Corporation (DACC) for the potential acquisition of district cooling assets. The acquisition is expected to be completed in the second quarter of 2022 for around Dhs1.05 billion.

On March 29, 2022, Empower entered a new bridge loan agreement of Dhs918 million to fund this potential acquisition.

Dewa has announced a dividend policy based on the Group’s expectation of strong cash flow and earning potential. An interim dividend payment of Dhs 3.1 billion is scheduled to be paid in October 2022.

Meanwhile Dubai Electricity and Water Authority (Dewa) continued its journey of excellence and global leadership during 2021 and strengthened its position as one of the most distinguished utilities in the world in all fields. It has won 59 prestigious local, regional, and international awards, and set two world records in the Guinness World Records. In light of its new achievements, Dewa has accrued 383 awards (67 local, 67 regional, 249 global) since 2015 to the end of 2021.

One of Dewa’s most notable successes was achieving the Sheikh Khalifa Excellence Award (SKEA) in the Elite Category in 2021.

Dewa scored 850 in the evaluation, the highest score in the Award’s history since its launch in 1999, with 200 local and regional organisations taking part in this round.

Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, honoured Dewa with five awards at the Dubai Government Excellence programme (DGEP) Awards in 2021.

The most prominent award is the Elite Award, which is awarded to government entities that score 600 points or more.

Other awards include the Best Entity in the Emiratisation Field, Dubai Medal for Specialised Employee, Dubai Medal for Young Employee, and special recognition for the Unknown Soldier. Dewa won the 2020 Hamdan Bin Mohammed programme for Government Services Flag for its Smart Living initiative.