Dubai’s DEWA reports 22% rise in consolidated net profit for 2022

The utility provider reported a 101 per cent growth in standalone net profit of Dhs11.1bn for 2022, in its preliminary and unaudited consolidated financial results. This included Dhs4.4bn of other income, driven by Dhs2.3bn dividend received from Empower and Dhs1.67bn in profit from the sale of Empower shares.

For the full year, DEWA’s consolidated revenue equalled Dhs27.4bn, while its net profit stood at Dhs8bn. Revenue growth was mainly driven by an increase in demand for electricity and water and a transition to normalised tariff structure, Dubai Media Office reported.

Meanwhile, its consolidated net profit for Q4 2022 totalled Dhs1.5bn, rising 25 per cent, while its fourth quarter revenue stood at Dhs6.7bn. DEWA’s dividend pay-out for last year climbed 60 per cent to Dhs9.9bn.

The utility provider said that it will pay an additional Dhs1.67bn as a special one-time dividend to shareholders in April 2023, subject to shareholder approval.

“In 2022, DEWA achieved record results and delivered its best financial performance and growth in its operating history. For the year 2022, DEWA had promised to pay Dhs6.2bn in dividends. Instead, DEWA intends to pay Dhs9.9bn in dividends to its shareholders. The delivery of our strategy has translated into exceptional returns to our shareholders,” said Saeed Mohammed Al Tayer, MD and CEO of DEWA.

Demand in services
Demand for power in 2022 reached 53.2TWh compared to 50.4 TWh in 2021, representing a 5.56 per cent increase. DEWA’s peak demand last year was 9.5GW, recorded in July; its annual gross heat rate for power was 8,604 BTU/kWH, and its overall power plant reliability factor was 99.93 per cent.

Read: Dubai records 5.5% growth in energy demand in 2022

Demand for water in 2022 reached 136.9 billion imperial gallons (BIG), up 6.45 per cent from 128.6 BIG. Relative to capacity, DEWA’s minimum reserve margin in 2022 for power and water was 28 per cent and 15.2 per cent respectively.

By the end of 2022, DEWA served 1,157,501 customers, representing an increase of 14,438 customers from the third quarter of 2022. As many as 51,089 new customers were added in 2022.

For the year 2022, DEWA commissioned two 400kV substations, fifteen 132kV substations and 1,113 11-6.6kV substations. It also deployed 1,108,530 smart electricity meters and 996,917 smart water meters. The company recorded a customer minute lost time of 1.19 minutes.

By the end of 2022, the company also installed an additional 1,100 MW of generation capacity, representing an 8.2 per cent increase. Of this 1,100MW, 600MW was gas fired and 500MW was solar. The company’s current installed generation capacity stands at 14.5 GW with 2GW of this capacity representing renewable energy.

Read: Dubai’s DEWA adds 700MW of energy production capacity

The company’s Mohammed bin Rashid Al Maktoum Solar Park is the largest single site solar park in the world based on the Independent Power Producer (IPP) model.

For 2023, DEWA expects to add an additional 2GW of generation capacity and 210 MIG of water reservoir capacity. and to host a gross installed capacity of 20GW – of which 5GW would be renewable capacity – and 730 MIGD of desalinated water by end of the decade.

DEWA’s electric vehicle (EV) charging network expanded to 350 chargers with 620 charge points across Dubai, with plans to grow the network to 1,000 chargers by 2025.

“Looking ahead, I am optimistic about our operating and financial outlook for 2023 and beyond. DEWA stands ready to support the Dubai Economic Agenda (D33), which aims to double the size of Dubai’s economy over the next decade. In addition, our strategy, growth pillars and capital commitments are well positioned to deliver on our energy transition ambitions to achieve the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Emissions Strategy 2050 to provide 100 per cent of the energy production capacity from clean energy sources by 2050,”  added Al Tayer.

Read: Sheikh Mohammed launches Dubai Economic Agenda, ‘D33’ aims to double size of economy in 10 years

In April 2022, DEWA was listed as a public company on the Dubai Financial Market, becoming the largest initial public offering in the UAE and the largest utility IPO globally since 2008.

Read: Dubai’s DEWA raises $6.1bn in EMEA’s biggest IPO since 2019

Further, DEWA’s subsidiary, Empower listed on the DFM in November, 2022, floating 20 per cent of its issued share capital.

Read: Empower rises in Dubai trading debut after $724m IPO