Dewa reports record revenue of Dhs9.4 billion in 3rd quarter

Dubai Electricity and Water Authority (Dewa) on Friday reported its third quarter 2023 (Q3’23) consolidated financial results, with a record quarterly revenue of Dhs9.4 billion, an operating profit of Dhs3.7 billion, and EBITDA of Dhs5.2 billion.

For the first nine months, Dewa’s consolidated revenue totalled Dhs22.2 billion, with an operating profit of Dhs6.9 billion and EBITDA of Dhs11.2 billion.

By the end of Q3’23, the Company’s net cash from operating activities increased by a robust Dhs754 million to Dhs9.8 billion, representing a stellar 8.3 per cent increase compared to the same period last year.

Dewa’s third-quarter consolidated revenue increase of 10.2 per cent to Dhs9.4 billion was mainly driven by an increase in demand for electricity, water, and cooling services as well as an increase in the revenues from Dewa’s other portfolio of assets.

Total power generation in the third quarter reached 18.897 TWh, compared to 17.375 TWh in the same quarter in 2022, a growth of approximately 8.8 percent. A reliability factor of 99.5 percent was maintained. Total green energy generation during the quarter amounted to 1.626 TWh, a 29.9 per cent increase over the same period in 2022. Dewa achieved a gross heat rate of 8,042 BTU/kWh which is a 2.5 percent improvement over last year and reflects higher operational efficiency resulting from the Company’s targeted sustainability and optimisation efforts.

Water desalination in the third quarter of 2023 reached 38.7 billion imperial gallons (BIG), a 5.4 percent increase over the same period in the previous year. As of 30 Sep 2023 Dewa is serving 1,200,312 customers, which is 57,159 (or 5 per cent) more accounts than a year ago, and an increase of 15,601 accounts from the second quarter of 2023.

Despite a doubling in finance costs, Dewa’s third-quarter net profit exceeds the profit of the same period last year by 6.9 per cent.

For the first 9 months of 2023, Dewa’s revenue growth of 7.4 per cent was mainly driven by electricity demand growth of 6.4 per cent, water demand growth of 5.7 per cent and cooling services revenue growth of 9.5 per cent. In addition, the company delivered 4.771 TWh of green power, representing a 34.5 percent increase compared to the same period last year.

“I am pleased to report significant achievements and record-breaking milestones for Dewa in this quarter. We have achieved the highest quarterly revenue, operating profit, EBITDA and net profit in DEWA’s history with an outstanding 9.9 per cent growth in our EBITDA. Our electricity generation growth of 8.8 percent, gross installed capacity of 15.1 GW with 17 per cent of which is coming from renewable sources, peak load of 10.4GW, customer accounts exceeding 1.2 million, are the highest ever reported. Today, our gross infrastructure investment exceeds Dhs215 billion, and our year-to-date carbon emissions reduction has exceeded 3 million tons. The profit from this quarter alone is sufficient to meet our dividend obligations for the second half of 2023,” said Saeed Mohammed Al Tayer, MD and CEO of Dewa.

In August, Dewa  reported its second quarter 2023 consolidated financial results, recording quarterly revenue of Dhs7.3 billion and net profit of Dhs1.98 billion. For the first six months, Dewa’s consolidated revenue was Dhs12.7 billion and net profit was Dhs2.7 billion.

By the end of H1, 2023, the Company’s net cash from operating activities increased by a record Dhs837million to Dhs5.4 billion, representing a stellar 18.2% increase versus the same period for the last year.

Dewa’s first six month consolidated revenue increase of 5.4% to Dhs12.7 billion was mainly driven by an increase in demand for electricity, water, cooling services and an increase in the revenues of Dewa’s other portfolio of assets. 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%.

During the second quarter consolidated revenue increased by 4.1% to Dhs7.3 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.

Demand for power in the second quarter 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% 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.

By the end of the second quarter of 2023, Dewa is serving 1,184,711 customer accounts, representing an increase of 14,998 customer accounts from the first quarter of 2023.