DEWA Shareholders Approve AED 3.1 Billion Dividend Payout In Recent Assembly

In a significant announcement made during the general assembly on 28th March 2024, Dubai Electricity and Water Authority (DEWA) declared the approval of a substantial dividend payment totalling AED 3.1 billion, set for distribution with a record date of 8th April 2024. The assembly, presided over by Matar Humaid Al Tayer, Chairman of the Board of Directors, saw an impressive turnout with 85.9 percent of shareholders in attendance, alongside Saeed Mohammed Al Tayer, MD and CEO of DEWA, and other board members.

For investors holding DEWA shares before the dividend record date (with a Last Entitlement Date of 4th April 2024), an attractive twelve-month dividend yield of 5.0 percent is anticipated, based on the IPO share price of AED 2.48 per share. This move underscores DEWA's commitment to delivering value to its shareholders while maintaining its pivotal role in Dubai's infrastructure development.

Matar Humaid Al Tayer highlighted DEWA's integral contribution to Dubai's status as a global hub for trade, finance, tourism, and the green economy. He attributed this success to the visionary leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai. DEWA's focus on clean energy transition and operational excellence has not only established its global leadership but also ensured sustainable growth and optimized returns for stakeholders.

Saeed Mohammed Al Tayer shared insights into DEWA's performance over the past year, noting record figures in annual revenue exceeding AED 29 billion, operating profit over AED 8.7 billion, and EBITDA surpassing AED 14.7 billion. These achievements mark the highest in DEWA's history. Additionally, DEWA achieved a record annual power generation of 56.1 TWh, including clean power generation of 6.2 TWh, and reported significant milestones in water desalination and demand management.

DEWA's commitment to sustainability was further evidenced by an annual reduction of over 9.1 million tonnes of CO2 emissions in 2023. The authority also set global benchmarks with the lowest electricity line loss at 2 percent, customer minutes lost at an annual rate of 1.06 minutes per customer, and water line loss at 4.6 percent.

Looking forward to 2024, Saeed Mohammed Al Tayer expressed optimism about DEWA's operational and financial outlook. Factors such as increased tourism, growth in residential and commercial demand for services, and a rising active day-time population in Dubai present promising opportunities for further business expansion.

This strategic dividend payout aligns with DEWA's long-term vision for sustainable growth and operational excellence. It reflects the authority's dedication to enhancing Dubai's infrastructure capabilities while minimizing environmental impact, thereby securing its position as a leader in the global energy sector.

With inputs from WAM