(MENAFN– Khaleej Times)
Dubai Electricity and Water Authority (Dewa) on Wednesday announced exponential growth in its consolidated and standalone revenues and profits for 2022 and indicates that it will be distributing Dh9.9 billion in dividends to the shareholders as against Dh6.2 billion promised earlier.
The Emirate of Dubai’s exclusive electricity and water services provider said its consolidated revenue in 2022 rose to Dh27.4 billion and net profit reached at Dh8 billion while fourth-quarter revenues and net profit stood firm at Dh6.7 billion (up 14 per cent) and Dh1.5 billion (up 25 per cent), respectively.
The power utility, which is listed on the Dubai Financial Market (DFM), said its standalone net profit surged 101 per cent to Dh11.1 billion, which included Dh4.4bn of other income. The key drivers of this other income included Dh2.3 billion dividend received from Empower and Dh1.67 billion of profit from the sale of Empower shares.
In addition, the standalone annual revenues rose 16 per cent to Dh25.2 billion, according to Dewa statement on Wednesday.
“In 2022, Dewa achieved record results and delivered its best financial performance and growth in its operating history. For the full year 2022, we delivered a consolidated net profit of Dh8 billion, which is an increase of 22 per cent over the full year 2021. Relative to 2021, our gross profit, operating profit and net profit margins increased,” said Saeed Mohammed Al Tayer, managing director and CEO of Dewa.
For the year 2022, he said Dewa had promised to pay Dh6.2 billion in dividends.“Instead, Dewa intends to pay Dh9.9 billion in dividends to its shareholders. The delivery of our strategy has translated into exceptional returns to our shareholders,” he said.
In April 2022, Dewa was listed as a public company on the Dubai Financial Market. This was the largest IPO in the UAE and the largest utility IPO globally since 2008.
Saeed Mohammed Al Tayer, managing director and CEO of Dewa, said he is optimistic about the company’s operating and financial outlook for 2023 and beyond.
Later in November, Dewa’s subsidiary Empower also listed on the Dubai Financial Market as a public company. Dewa currently owns 56 per cent of Empower and also consolidates the same. Dewa is the only entity in the region to have listed both itself and its subsidiary in the course of the same year.
Strategy delivers record results
For the year 2022, Dewa delivered on its core strategic objective, which is focused on delivering sustainable growth, staying at the forefront of smart and innovative operational excellence and optimising returns for all its stakeholders whilst minimising its environmental footprint.
Accordingly, Dewa’s 2022 annual consolidated revenue increase of 15 per cent to Dh27.35 billion was mainly driven by an increase in demand for electricity and water and a transition to normalised tariff structure. Demand for power in 2022 reached 53.2 TWh compared to 50.4 TWh in 2021, representing a 5.56 per cent increase.
“Looking ahead, I am optimistic about our operating and financial outlook for 2023 and beyond. Dewa stands ready to support the Dubai Economic Agenda (D33), which aims to double the size of Dubai’s economy over the next decade. In addition, our strategy, 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 in Dubai,” added Al Tayer.
“Dewa’s shareholder strategy is focused on delivering consistency of returns, durability of growth and compounding of our growth value over time, which forms the bedrock of our core value proposition to our investors,” he said.
Peak power demand
Further, Dewa’s peak demand in 2022 was 9.5 GW, which represents a 3.3 per cent increase over the same period of 2021. For the year 2022 and 2021, Dewa achieved peak demand in the month of July. Average customer power consumption in 2022 was higher than that of 2021.
Dewa’s annual gross heat rate for power was 8,604 BTU / kWH, which is the best achieved in its operational history, reflecting our targeted sustainability and environmental efforts. In addition, Dewa’s overall power plant reliability factor was 99.93 per cent, exceeding the company’s targets, and demonstrating the company’s commitment towards operational excellence.
Demand for water in 2022 reached 136.9 billion imperial gallons (BIG) compared to 128.6 BIG, representing a 6.45 per cent increase. Average customer water consumption in 2022 was higher than that of 2021.
Relative to capacity, Dewa’s minimum reserve margin in 2022 for power and water was 28 per cent and 15.2 per cent, respectively.
By the end of 2022, Dewa served 1,157,501 customers, representing an increase of 14,438 customers from the third quarter of 2022. Dewa added 51,089 new customers in 2022, which is a 4.6 per cent increase from 2021.
For the fourth quarter of 2022, Dewa generated 12.4 TWh, representing a 6.05 per cent increase from the same period of 2021. Similarly, Dewa produced 33.4 BIG of desalinated water for the same period, representing a 6.12 per cent increase.