Dewa profit falls despite surge in demand

Wam

The state-owned utility provider Dubai Electricity and Water Authority (Dewa) reported a 13 percent year on year decline in net profit to AED651 million ($177.2 million).

The lower earnings were mostly due to higher administrative expenses, finance costs and a drop in other income.

Revenue for the period reached nearly AED6 billion, an annual rise of 7 percent, thanks to the growing demand for electricity, water and cooling services. 

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Operating profit rose 12 percent to AED995 million, while net cash from operations increased to AED3.3 billion, up 27 percent yearly.

Gross power generation reached 10.3 terawatt-hours (TWh), a 6.2 percent increase year on year. Clean power generation hit 1.46 TWh, up by nearly 20 percent from last year. It accounted for 14 percent of the total power during the quarter.

Peak demand climbed 7 percent year on year in the March-ended quarter to 6 gigawatts.  

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Total desalinated water production grew by 5 percent to 34 billion imperial gallons, while peak daily desalinated water demand reached 401 million imperial gallons, up 5 percent year on year.

Customer accounts registered a nearly 5 percent rise to 1.22 million, compared to 1.16 million a year ago.

Dewa said it expects to pay a minimum annual dividend of AED6.2 billion in the first five years starting October 2022.  

In October 2023, the company paid AED3.1 billion as a dividend for H1 2023. The next dividend payout for the first half of 2024 is likely in October 2024.