Dewa reports a record first quarter consolidated net profit of Dh763 million

Dubai Electricity and Water Authority (Dewa) on Monday reported its first quarter 2023 consolidated financial results, recording quarterly revenue of Dh5.44 billion and net profit of Dh763 million. For the last twelve months, Dewa’s consolidated revenue was Dh27.7 billion and net profit was Dh8.1 billion.

Dewa’s first quarter consolidated revenue increase of 7.3 per cent to Dh5.44 billion was mainly driven by an increase in demand for electricity, water, and cooling services as well as an increase in the revenues of Dewa’s other portfolio of assets. Quarterly revenue growth for electricity, water and cooling services increased by 7.2 per cent, 7.0 per cent and 4.6 per cent respectively. Dewa’s other portfolio of assets grew their revenue by 11.2 per cent. Demand for power in the first quarter reached 9.66 TWh compared to 9.17 TWh for the same period in 2022, representing a 5.3 per cent increase. Average customer power consumption in the first quarter of 2023 was higher than that of 2022.

Dewa’s first quarter gross heat rate for power was 9,317 BTU / kWH, which is a 2.04 per cent improvement compared to the same period in the last year, indicating increased operational efficiency, reflecting our targeted sustainability and environmental efforts.

Demand for water in the first quarter of 2023 reached 32.3 billion imperial gallons (BIG) compared to 30.4 BIG in Q1, 2022, representing a 6.25 per cent increase. Average customer water consumption in the first quarter of 2023 was higher than that of 2022.

By the end of the first quarter of 2023, Dewa served 1,169,713 customers, representing an increase of 12,212 customers from the fourth quarter of 2022, and an increase of 51,022 customers from the first quarter of 2022.

“At Dewa, we continue the journey of excellence and sustainable growth guided by the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, and the directives of Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of Dubai, and Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance of the UAE. Our reported results for the first quarter of 2023 have exceeded our expectations, reflecting the robust growth of Dubai. Looking ahead, I reiterate our optimism about our operating and financial performance for 2023 and beyond. Dewa’s shareholder strategy is focused on delivering consistency of returns, sustainability of growth and compounding of our growth value over time, which forms the bedrock of our core value proposition to our investors,” said Saeed Mohammed Al Tayer, MD & CEO of Dewa.

“Dewa’s efforts support the Dubai Economic Agenda (D33), which aims to double the size of Dubai’s economy over the next decade. Our strategies, 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, while supporting the strong demand for our exclusive portfolio of products and services,” added Al Tayer.

Select quarterly highlights

By the end of the first quarter of 2023, Dewa commissioned four 132 kV substations, and three 33kV substations. Dewa has now deployed 1,129,816 smart electricity meters (up by 21,286 from December 2022) and 1,010,924 smart water meters (up by 14,007 from December 2022).

Over the 1st quarter of 2023, Dewa added 100 MW of solar capacity. The company’s installed generation capacity at the end of the 1st quarter stands at 14.6 GW with 2.1 GW of this capacity from renewable energy. Dewa’s H Station at Al Aweer has reached a project progress of 95.49 per cent, while the Hatta pumped storage hydroelectric power plant has reached a project progress of 65.2 per cent.

The company’s installed desalinated water production capacity at the end of the 1st quarter is unchanged at 490 MIGD.

By the end of 2030, Dewa plans to have gross installed capacity of 20 GW and 730 MIGD of desalinated water. Of this 20 GW, Dewa plans to have 5 GW of installed renewable capacity, representing 25 per cent production from renewable sources. The additional 240 MIGD of desalination capacity will be achieved using reverse osmosis technology.

• Business