UAE’s DEWA reports net profit of Dhs691m for Q1 2022
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UAE’s DEWA reports net profit of Dhs691m for Q1 2022

UAE’s DEWA reports net profit of Dhs691m for Q1 2022

Dubai’s main power and water company also reported a 15 per cent growth in Q1 2022 revenues to Dhs5.068bn

DEWA dubai

The Dubai Electricity and Water Authority (DEWA) has reported Q1 2022 revenue growth of 15 per cent to Dhs5.068bn and a net profit of Dhs691m.

Compared to Q1 2021, electricity revenue is up 17.5 per cent, water revenue is up 20.2 per cent, and district cooling revenue is up 17.6 per cent in the first quarter of this year.

DEWA’s consolidated gross fixed assets grew by Dhs2.8bn to Dhs204.2bn as of March 31, 2022 compared to Dhs201.4bn on December 31, 2021.

DEWA currently provides its services to 3.5 million Dubai residents and the emirate’s active daytime population of over 4.7 million. These numbers are expected to grow to 5.8 million and 7.8 million, respectively, by 2040, according to state news agency WAM.

DEWA said that its growth roadmap is aligned with Dubai’s Net Zero Carbon Emissions Strategy 2050, which aims to provide 100 per cent of Dubai’s energy production capacity from clean energy sources by 2050.

On October 27, 2021, Empower signed Heads of Terms with Dubai Airports City Corporation for the potential acquisition of district cooling assets. The acquisition is expected to be completed in the second quarter of 2022 for around Dhs1.05bn. On March 29, 2022, Empower entered a new bridge loan agreement of Dhs918m to fund this potential acquisition.

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

In April, DEWA raised $6.1bn in the biggest initial public offering in Europe and the Middle East in over two years. It sold nine billion shares at Dhs2.48 each, giving it a market value of $33.8bn. DEWA almost tripled the size of the stake it sold to 18 per cent.

DEWA has announced a dividend policy based on the group’s expectation of strong cash flow and earning potential. An interim dividend payment of Dhs3.1bn is scheduled to be paid in October 2022.

“We have ample liquidity on our Balance sheet to allow us to pursue growth opportunities. DEWA will continue to make disciplined capital investments, achieving cost savings while growing our footprint and maintaining a high level of safety, quality and customer happiness. We are committed to creating incremental shareholder value and to providing dividend visibility to our shareholders,” said Saeed Mohammed Al Tayer, MD and CEO of DEWA.

Last month, DEWA announced that the total length of transmission and distribution electricity lines has reached 41,930 kilometres and the water transmission and distribution lines has reached 13,592 kilometres across Dubai by the end of 2021.

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