DEWA Achieves Record Net Profit Of AED 651 Million In First Quarter Of 2024

Dubai Electricity and Water Authority (DEWA), a key utility provider in the Emirate of Dubai and a notable entity on the Dubai Financial Market (DFM), has unveiled its financial outcomes for the first quarter of 2024. The figures are impressive, with DEWA reporting a quarterly revenue of AED 5.8 billion, an EBITDA of AED 2.6 billion, an operating profit of AED 995 million, and a net profit of AED 651 million. These results underscore a significant demand growth in electricity and water services, marking a pivotal moment for DEWA.

Saeed Mohammed Al Tayer, MD & CEO of DEWA, highlighted the company's strategic focus on sustainable growth and operational excellence. "The high demand growth of 6.4 percent in electricity and 5.9 percent in water have contributed to exceptional operating results in this quarter," Al Tayer stated. He further emphasized DEWA's role as a global benchmark in the power, water, and district cooling sector, aligning its strategies with Dubai's ambitious energy transition goals under the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy 2050.

The first quarter of 2024 saw DEWA's consolidated revenue rise by 6.7 percent to AED 5.8 billion, primarily due to increased demand for electricity, water, and cooling services. The company's EBITDA rose by 9.0 percent to AED 2.6 billion, with operating profit up by 11.6 percent to AED 995 million. Notably, DEWA's net cash from operations surged by AED 692 million to AED 3.3 billion, demonstrating a robust year-on-year cash flow generation capability.

DEWA's gross power generation reached a new high of 10.3 TWh in the first quarter of 2024, marking a 6.2 percent increase from the previous year. The company generated 1.46 TWh of clean power during the quarter, accounting for 14 percent of the total power generated. This represents a significant step towards maintaining a sustainable generation mix.

The utility provider also reported a 7.24 percent increase in its quarterly peak demand, reaching 6.1 GW in Q1, 2024. Additionally, DEWA achieved a quarterly gross heat rate of 8,822 BTU/kWh, indicating a 5.26 percent improvement over the same period last year.

In terms of water production, DEWA's total desalinated water production grew by 5.36 percent compared to the previous year, reaching a record of 34 Billion Imperial Gallons (BIG). The peak daily desalinated water demand also saw an increase, reaching 401 Million Imperial Gallons (MIG).

By the end of the first quarter of 2024, DEWA had expanded its customer base to 1,224,560 accounts, up from 1,169,713 accounts a year ago. The company also made significant progress in its ongoing projects, commissioning three 132 kV substations and two hundred eighty-one 11kV substations.

DEWA achieved financial close for two new Independent Power Producer (IPP)/Independent Water Producer (IWP) projects during the quarter: the 180 MIGD Hassyan Water Company and the 1800 MW Shuaa 4 Solar PV plant. As of the end of Q1 2024, DEWA's installed generation capacity stood at 16.27 GW with renewable energy contributing to 2.63 GW of this capacity.

Following its dividend policy, DEWA anticipates paying a minimum annual dividend of AED 6.2 billion in the first five years starting October 2022. The dividends are distributed semi-annually in April and October. On April 26th, 2024, DEWA disbursed AED 3.1 billion as dividend for H2, 2023 to its shareholders.

This financial performance not only demonstrates DEWA's robust operational capabilities but also its commitment to supporting Dubai’s economic growth and sustainability goals through innovative energy solutions.

With inputs from WAM