DEWA posts first-quarter loss, despite surge in demand

Dubai Electricity and Water Authority (DEWA) reported a 15 per cent drop in first-quarter profit on Thursday, despite a surge in demand for energy, water and cooling services in the city.

DEWA’s profit for the January-March period plunged to Dhs651m, compared to Dhs763m during the same period a year earlier.

The utility major’s revenues in the three months to March 31 reached Dhs5.8bn, up 6.7 per cent year-on-year (YoY) from Dhs5.4bn in Q1 2023. DEWA’s net cash from operating activities increased by Dhs692m to Dhs3.3bn in the quarter, representing a record 26.9 per cent increase compared to the same period a year ago.

“We will continue to focus on our core strategic objective of delivering sustainable growth, staying at the forefront of smart and innovative operational excellence and optimising returns for all our stakeholders,” said Saeed Mohammed Al Tayer, the managing director and CEO of DEWA.

“Our strategies, initiatives and capital commitments are aligned to achieving the ambitious energy transition goals outlined in the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy 2050.”

The company’s earnings before interests, taxes, depreciation and amortisation (EBITDA) reached Dhs2.6bn in the three months to March 31, up 9 per cent from a year ago while its operating profit came in at Dhs995m, up 11.6 per cent.

DEWA had 1.22 million customer accounts in the first quarter of 2024, a 4.7 per cent increase compared to 1.16 million a year ago.

The group distributed Dhs3.1bn as a dividend for H2 2023 to its shareholders on April 26; the upcoming Dhs3.1bn for H1 2024 is expected to be distributed in October 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.

DEWA on delivering growth

DEWA’s power generation soared to a high of 10.3 terawatt-hours (TWh), a 6.2 per cent increase from the 9.7 TWh in the first quarter of 2023. It delivered 1.46 TWh of renewable energy, up 19.8 per cent compared to the same period a year earlier.

Meanwhile, the company’s total desalinated water production grew by 5.36 per cent in Q1 2024 to reach 34 billion imperial gallons (BIG).

The utility group commissioned three 132 kV substations and two hundred eighty-one 11kV substations in the first quarter of the year.

Together with Saudi Arabia’s ACWA Power, the company secured financing for the 180 million imperial gallons per day (MIGD) Hassyan seawater desalination plant.

The Dubai-listed firm has an installed generation capacity of 16.27 gigawatt GW as of March 31, with 2.63 GW of this capacity coming from renewable energy. Its installed desalinated water production capacity is unchanged at 495 MIGD.

Read: DEWA, ACWA Power secure financing for Hassyan desalination plant