DEWA commissions 1,414 distribution substations in 2023

Dubai Electricity and Water Authority (DEWA) commissioned 1,414 distribution substations of 11kV in 2023, the utility company’s managing director & CEO said Sunday.

“DEWA builds a state-of-the-art infrastructure that keeps pace with the sustainable development requirements in Dubai and meets the needs of customers, developers, and businesses,” said Saeed Mohammed Al Tayer.

“In addition to energy and water production projects, DEWA is working to enhance the transmission and distribution networks based on electricity demand forecast until 2030, considering the Emirate’s demographic and economic growth.”

The number of medium voltage substations (11kV and 6.6kV) reached 44,015 stations by the end of 2023.

Meanwhile, DEWA’s customers conducted around 12.5 million digital transactions in 2023, a 25 per cent increase compared to about 10 million digital transactions that were recorded in 2022.

The digital transactions include more than 2.1 million transactions using the company’s website, over 3.2 million transactions using its smart app, in addition to more than 6.8 million transactions through various digital channels that DEWA provides in collaboration with its partners.

The utility firm offers digital services for electricity and water management, as well as innovative sustainability services.

DEWA’s sustainable growth

DEWA reported a 10.2 per cent increase in Q3 2023 revenues to Dhs9.4bn ($2.5bn), driven by higher demand for energy, water and cooling services in the city.

“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,” the utility firm said in a bourse filing.

The company said its third-quarter net profit exceeds the profit of the same period last year by 6.9 per cent despite a doubling in finance costs.

DEWA’s net cash from operating activities Q3 2023 increased by a robust Dhs754m to Dhs9.8bn, representing a record 8.3 per cent increase compared to the same period a year ago.

The group’s earnings before interests, taxes, depreciation and amortisation (EBITDA) reached Dhs5.2bn in the three months to September 30, up 9.9 per cent from the year earlier.

For the first nine months, its consolidated revenue totalled Dhs22.2bn, with an operating profit of Dhs6.9bn and EBITDA of Dhs11.2bn.

The company distributed Dhs3.1bn as dividend for H1 2023 to its shareholders on October 18 and the upcoming dividend of Dhs3.1bn for H2 2023 is expected to be distributed in April 2024.

It expects to pay a minimum annual dividend of Dhs6.2bn in the first five years following its initial public offering in October 2022.

Read: DEWA’s R&D Centre files new patent for advanced battery performance