Dubai, UAE – Dubai Electricity and Water Authority (DEWA) reported a revenue of AED 7.3 billion ($2bn) in second quarter of 2023, while its net profit was AED 1.98 billion ($540m), local media reports said.
For the first half of 2023 (H1 2023), DEWA’s consolidated revenue was AED 12.7 billion ($3.46bn) and net profit was AED 2.7 billion ($740m).
By the end of H1 2023, the company’s net cash from operating activities increased by a record AED 837 million (227.88m) to AED 5.4 billion ($1.47bn), representing a 18.2 percent increase versus the same period for the last year.
DEWA’s first six month consolidated revenue increase of 5.4 percent to AED 12.7 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 percent, 3.8 percent and 4.9 percent respectively. DEWA’s other portfolio of assets grew their revenue by 7.8 percent.
During the second quarter consolidated revenue increased by 4.1 percent to AED 7.3 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 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 percent 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.
Compared to the first half of 2022, DEWA’s first half 2023 net profit was impacted as a result of an increase in net finance costs, and depreciation.
Net finance costs were higher by AED 262 million as a result of increase in EIBOR during the last 12 months, and as a result of a reduction in capitalized interest of new IPP projects that have been commissioned.
In addition, depreciation has increased by AED 190 million due to new IPP projects that were commissioned, adding to DEWA’s generation capacity.