Dubai: Dewa posts Dh7.3 billion revenues and Dh1.98 billion net profit in Q2
Dubai: Dewa posts Dh7.3 billion revenues and Dh1.98 billion net profit in Q2
Dubai Electricity and Water Authority (Dewa) on Thursday reported its second quarter 2023 revenue of Dh7.3 billion and net profit of Dh1.98 billion.
The utility services provider’s first six-month consolidated revenue increased 5.4 per cent to Dh12.7 billion, mainly driven by an increase in demand for electricity, water, cooling services and an increase in the revenues of another portfolio of assets. Revenue growth for electricity, water and cooling increased by 5.7 per cent, 3.8 per cent and 4.9 per cent respectively. Dewa’s other portfolio of assets grew their revenue by 7.8 per cent. Its H1 net profit stood at Dh2.7 billion.
The company expects to pay a minimum annual dividend of Dh6.2 billion, over the first five years, starting October 2022. The dividends are being paid semi-annually in April and October. The upcoming dividend payment of Dh3.1 billion for H1 2023 is expected to be disbursed in October 2023.
By the end of H1, the company’s net cash from operating activities increased by a record Dh837 million to Dh5.4 billion, representing a stellar 18.2 per cent increase versus the same period for the last year.
During the second quarter, consolidated revenue increased by 4.1 per cent to Dh7.3 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. Its 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, representing a 4.6 per cent increase.
By the end of the second quarter of 2023, Dewa was serving 1,184,711 customer accounts, representing an increase of 14,998 customer accounts from the first quarter of 2023.
It said the 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 Dh262 million as a result of an 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 Dh190 million due to new IPP projects that were commissioned, adding to its generation capacity.
“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, ” said HE Saeed Mohammed Al Tayer, MD & CEO of Dewa.
The Company’s installed generation capacity currently stands at 14.9 GW with 2.4 GW of this capacity representing renewable energy. In line with Dubai Clean Energy Strategy 2050, the Company added 300 MW of green capacity during the 2nd quarter of 2023. The current installed desalinated water production capacity is unchanged at 490 MIGD.
By the end of 2030, Dewa plans to have a gross installed capacity of 20 GW and 730 MIGD of desalinated water. Of this 20 GW, Dewa intends to have 5 GW of installed renewable capacity, representing 25% generation from renewable sources. In addition, the Company plans to add 240 MIGD of desalination capacity using reverse osmosis technology.
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source: khaleejtimes
