Dubai Electricity and Water Authority PJSC (“DEWA”) Announces Strong Q1 Results, Continues Robust Delivery of Smart Growth Strategy
Dubai Electricity and Water Authority PJSC (ISIN: AED001801011) (Symbol: DEWA), the Emirate of Dubai’s exclusive Electricity and Water services provider, which is listed on the Dubai Financial Market (DFM), today reported its first quarter 2022 financial results, recording Revenue of AED 5.068 billion and Net Profit of AED 691 million.
Robust financial performance
DEWA’s first quarter revenue increased by 15% to AED 5.068 billion which was driven by an increase in consumption across all sectors and the transition to a normalized tariff structure in the beginning of this year. Rise in hospitality and commercial activities in Dubai, in part due to the easing of Covid-related restrictions world-wide, has contributed to the robust demand growth.
Compared to the first quarter of 2021, Electricity revenue is up 17.5%, Water revenue is up 20.2% and district cooling revenue is up 17.6% in the first quarter of 2022.
DEWA’s consolidated gross fixed assets grew by AED 2.8 billion to AED 204.2 billion as on 31st March 2022 compared to AED 201.4 billion on 31st December 2021.
“DEWA meets the increasing demand for Electricity and Water in Dubai according to the highest standards of reliability, efficiency and quality, thanks to the best-in-class infrastructure and sound governance system across the group. The strong first quarterly result is a testament to our resilient operating business model and continues a track record of consistent growth. 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 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 HE Saeed Mohammed Al Tayer, MD & CEO of DEWA.
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. DEWA’s growth plans are aligned to Dubai’s 2040 Urban Master Plan, Dubai’s Clean Energy Strategy 2050 and Dubai’s Net Zero Carbon Emissions Strategy 2050 which aims to provide 100% of Dubai’s energy production capacity from clean energy sources by 2050.
Electric mobility updates
In April of 2022, DEWA launched the ‘Dubai EV Community Hub’ website for Dubai, aiming to increase electric vehicle (EV) adoption by centralising information regarding EV developments in Dubai. This is part of DEWA’s efforts to encourage the use of sustainable transport as well as to consolidate Dubai’s position as a global capital for a green economy and sustainable development. Increased adoption of Electric Vehicles in Dubai is expected to have a direct incremental impact to DEWA’s bottom line.
Inorganic growth update
On 27 October 2021, Empower signed Heads of Terms (HOTs) with Dubai Airports City Corporation (“DACC”) for the potential acquisition of district cooling assets. The acquisition is expected to be completed in the second quarter of 2022 for an estimated consideration of AED 1.05 billion. On 29 March 2022, EMPOWER entered into a new bridge loan agreement of AED 918 million to fund this potential acquisition.
DEWA has announced a dividend policy which is based on the Group’s expectation of strong cash flow and earning potential. Interim dividend payment of AED 3.1 billion is scheduled to be paid in October 2022.
The full first quarter earnings announcement can be found at:
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Dubai Electricity and Water Authority
The Dubai Electricity and Water Authority (DEWA) was formed on 1 January, 1992, by a decree issued by His Highness Sheikh Maktoum bin Rashid Al Maktoum to take over and merge the Dubai Electric Company and the Dubai Water Department that had been operating independently for several years until then.