Dubai Electricity and Water Authority (DEWA) has announced a 19 percent increase in net profit at AED 691 million ($188 million) in Q1 2022 on increased power consumption. The utility giant, which listed its shares on Dubai Financial Market in April, will pay an interim dividend of AED3.1 billion ($844 million) in October.
DEWA’s Q1 revenue jumped an annual 15 percent to AED 5.66 billion.
It attributed the increase to consumption growth across all sectors, and transition to a normalised tariff structure at the start of the 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,” the company said in a press release alongside its Q1 2022 financial results, which were published today to Dubai Financial Market (DFM).
“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,” Mohammed Al Tayer, managing director and CEO of DEWA, said.
“We are committed to creating incremental shareholder value and to providing dividend visibility to our shareholders.”
DEWA currently provides 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, it said.
“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 percent of Dubai’s energy production capacity from clean energy sources by 2050,” the company said.
Last month, the DEWA launched electric vehicle (EV) information platform the Dubai EV Community Hub, saying that increased adoption of the electric-powered vehicles is expected to have a direct incremental impact on its bottom line.
The company’s operating profit was AED 878 million in the first quarter of 2022, up from AED 478 million in 2021.
(Reporting by Imogen Lillywhite; editing by Seban Scaria)