Dewa is on track to deliver the best full year financial performance in its history.
Dubai Electricity and Water Authority (Dewa), the Emirate of Dubai’s exclusive electricity and water services provider, which is listed on the Dubai Financial Market (DFM), on Thursday reported its third quarter 2022 financial results, recording quarterly revenue of Dhs8.55 billion and net profit of Dhs3.17 billion. Year to date, Dewa’s revenue is at Dhs20.63 billion and
Dewa’s net profit rises 21 per cent to Dhs6.47 billion for the third quarter of 2022.
Dewa reports a record (year to date) net profit of Dhs6.47 billion, which is nearly at par with its full year net profit of 2021.
Dewa’s first 9 month revenue increase of 15 billion to Dhs20.63 billion was mainly driven by an increase in demand and a transition to normalised tariff structure. Energy demand in Dubai during the first 9 months of 2022 increased by 5 billion compared to the same period in 2021. Similarly, water demand in the same period grew by 6.4 billion.
Demand for energy in the first 9 months of 2022 reached 40.7 TWh compared to 38.6 TWh in the first 9 months of 2021. Further, Dewa’s peak demand in the first 9 months of 2022 was 9.5 GW, which represents a 3.3 per cent increase over the same period of last year. For the year 2022 and 2021, Dewa achieved peak demand in the month of July.
By the end of the third quarter, Dewa served 1,143,153 customers, representing a 4.89 billion increase from the same time last year. Accordingly, Dewa has added 17,032 new customers since Q2, 2022.
For the third quarter of 2022, Dewa generated 17.3 TWh, representing a 3.59 billion increase from the same period last year. Similarly, Dewa produced 36.7 Billion Imperial Gallons of desalinated water, representing a 6.59 per cent increase.
“In line with the vision of the wise leadership to strengthen Dubai’s position as a leading global financial and economical hub we achieved a profit for the first 9 months of 2022 which is nearly at par with our full year net profit of 2021. These record results are a testament to our steadfast focus on delivering our strategic priorities of sustainable and innovative growth. We are well positioned to deliver the best full year financial performance in our history.
Moreover, we have made sustained progress towards unlocking shareholder value by paying our first dividend of Dhs3.1 billion in Oct, 2022, by announcing the intention to float our 70 per cent owned subsidiary Empower and by recommending the payment of a one-time special dividend of Dhs2.03 billion to be paid to our shareholders in December. For the financial year 2022, we expect to return Dhs8.23 billion in dividends to our shareholders,” said HE Saeed Mohammed Al Tayer, MD & CEO of Dewa, said: “Dewa offers an excellent value proposition that is backed by record earnings growth, predictable cash flows and a defined dividend policy, collectively reaffirming our ongoing commitment to continue to unlock value for our shareholders.” added Al Tayer.
Select quarterly highlights: Network growth and Innovation
In Q3, 2022, Dewa signed a partnership agreement with Dutch startup Desolenator BV, to build a sustainable, carbon-neutral water purification and desalination system based on solar thermal energy, targeting a levelised cost of potable water production at a rate that is less than US$0.02 per litre. A pilot water desalination plant has been installed at the Jebel Ali Power Plant and Desalination Complex, with a production capacity of minimum 1,000 litres of potable water per day.
In addition, the Museum of the Future in Dubai has signed a strategic partnership agreement with Dewa to showcase unique technologies and solutions related to the future of environmental sustainability and renewable energy.
In September 2022, Etihad Energy Services Company (Etihad ESCO), a wholly-owned subsidiary of Dewa, signed several contracts and Memoranda of Understanding (MoUs) with several Dubai government entities. Etihad ESCO signed MoUs with the Real Estate Regulatory Agency (RERA) for energy efficiency and energy metering services; contracts with Dubai Municipality, Dubai Multi Commodities Centre (DMCC) and Dubai Civil Defense for solar energy generation projects and energy efficiency of their facilities.
In Q3, 2022 Dewa broke its own world record in major inspection outage duration for the overhaul of gas turbines and desalination units. Specifically, Dewa has reduced the maintenance outages for key inspection operations from 11 days to 9 days, which is a reduction in the maintenance duration of 18%, compared to the previous world record achieved by Dewa in 2019.
In Q3, 2022 achieved the Guinness World Records title for owning and managing the Largest Single-Site Water Desalination Facility in the World with production capacity of 490 million imperial gallons of water per day.