Dubai Electricity and Water Authority (DEWA) today reported its first-quarter 2022 financial results, recording revenues of AED5.068 billion and net profit of AED691 million.
DEWA’s first-quarter revenue increased by 15% to AED5.068 billion, driven by an increase in consumption across all sectors and the transition to a normalized 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%, Water revenue is up 20.2%, and district cooling revenue is up 17.6% in the first quarter of 2022.
DEWA’s consolidated gross fixed assets grew by AED2.8 billion to AED204.2 billion as of 31st March 2022 compared to AED201.4 billion on 31st December 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% 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 centralizing 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 27th October 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 AED1.05 billion. On 29th March 2022, Empower entered a new bridge loan agreement of AED918 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 AED 3.1 billion is scheduled to be paid in October 2022.