Thursday, May 03, 2012
(This story was originally published Wednesday.)
--2011 total comprehensive income AED4.34 billion versus AED3.49 billion a year earlier
--Revenue at AED14.7 billion last year, up from AED10.87 billion in 2010
--Electricity sales +2.7% on year; income from new connections climbs
By Nikhil Lohade
Of Zawya Dow Jones
DUBAI (Zawya Dow Jones)--Dubai Electricity and Water Authority, or Dewa, said Wednesday that its profit rose 24% in 2011 as a result of higher tariffs and increased sales of electricity.
Dewa's total comprehensive income rose to 4.34 billion U.A.E. dirhams ($1.18 billion) last year, from AED3.49 billion a year earlier, according to the utility company's financial statements posted on the Nasdaq Dubai website.
Revenue jumped to AED14.7 billion from AED10.87 billion in 2010. Electricity sales rose 2.7% on the year.
Dewa noted that it received government approval in 2011 to raise tariffs by 15% and to introduce a fuel surcharge mechanism that protects it against any rise in fuel costs above the price prevailing in 2010.
"The combined effect of these favorable factors has been a significant improvement in the Authority's financial metrics and operating profitability," Dewa said.
The company's capital expenditure last year totaled AED5.5 billion, aimed at increasing production capacity and expanding the transmission network.
"We continued our efforts to expand infrastructure in order to cope with the steady growth in demand and to improve operational efficiencies in various areas of activity," it said.
Dewa is the sole provider and distributor of electricity in Dubai. Last month, it said it deferred its estimated $1.3 billion Hassyan independent power project, and will instead focus on raising existing production capacity and improving conservation to deal with higher electricity demand.
-By Nikhil Lohade, Dow Jones Newswires; +9714 446-1694; nikhil.lohade@dowjones.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
03-05-12 0353GMT
