Dubai's DEWA reports revenue of Dhs12.7bn in H1 2023
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Dubai’s DEWA reports revenue of Dhs12.7bn in H1 2023

Dubai’s DEWA reports revenue of Dhs12.7bn in H1 2023

For the first six months of 2023, the utility giant reported a net profit of Dhs2.7bn

Divsha Bhat

Dubai Electricity and Water Authority (DEWA) has reported its consolidated financial results for H1 2023.

DEWA‘s second quarter of 2023 revenue was Dhs7.3bn, while net profit was Dhs1.98bn.

For the first half of 2023, its consolidated revenue was Dhs12.7bn and net profit was Dhs2.7bn, state news agency WAM reported.

By the end of H1 2023, the company’s net cash from operating activities increased by a record Dhs837m to Dhs5.4bn, representing a 18.2 per cent increase versus the same period for the last year.

The first six month’s consolidated revenue increase of 5.4 per cent was mainly driven by an increase in demand for electricity, water, cooling services and an increase in the revenues of its other portfolio of assets. Revenue growth for electricity, water and cooling increased by 5.7 perc ent, 3.8 per cent and 4.9 per cent respectively. Meanwhile,  other portfolio of assets grew their revenue by 7.8 per cent.

During the second quarter, consolidated revenue increased by 4.1 per cent.

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 per cent 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, the utility giant 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 Dhs262m as a result of increase in Emirates Interbank Offered Rate 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 Dhs190m due to new IPP projects that were commissioned, adding to the authority’s generation capacity.

Saeed Mohammed Al Tayer, MD and CEO of DEWA, said: “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.”

“In line with our strategy, we continue to maintain a robust infrastructure and services to keep pace with rapid developments in Dubai driven by the sustainable economic growth, execution of the ambitious Dubai 2040 Urban Master Plan and the associated increase in population.

Today we provide world leading services to over 1.18 million customers at the highest standards of availability, reliability, efficiency and safety, and we are committed to future proofing the same,” Al Tayer added.

“DEWA’s strategy is focused on delivering consistent returns, upholding highest Environmental, Social, and Governance standards, sustainable growth and compounding of our growth value over time for our investors” Al Tayer concluded.

Read: DEWA bolsters commitment to green mobility by joining CharIN

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