Dubai Electricity and Water Authority (DEWA), listed on the Dubai Financial Market (DFM), has released its consolidated financial results for the second quarter of 2023 (Q2 2023) and the first half of 2023 (H1 2023), showcasing robust performance and growth across key financial indicators.
In Q2 2023, DEWA reported a revenue of AED 7.3 billion and a net profit of AED 1.98 billion. The first half of 2023 saw a consolidated revenue of AED 12.7 billion and a net profit of AED 2.7 billion. Notably, DEWA demonstrated strong cash flow, with net cash from operating activities reaching AED 5.4 billion by the end of H1 2023, indicating an impressive 18.2 percent increase compared to the same period in the previous year.
The revenue growth in H1 2023, amounting to a 5.4 percent increase to AED 12.7 billion, was primarily driven by rising demand for electricity, water, and cooling services. Specifically, revenue growth percentages for electricity, water, and cooling services were 5.7 percent, 3.8 percent, and 4.9 percent, respectively. Furthermore, DEWA’s other portfolio of assets contributed to the growth, with their revenue expanding by 7.8 percent.
During Q2 2023, consolidated revenue witnessed a 4.1 percent increase to AED 7.3 billion, driven by heightened demand for electricity, water, and cooling services, along with increased revenues from DEWA’s other portfolio of assets.
DEWA’s commitment to sustainability and environmental efforts translated into operational efficiency improvements. In the second quarter, the gross heat rate for power stood at 8,230 BTU / kWh, reflecting a noteworthy 4.2 percent enhancement compared to the same period the previous year.
Water demand in Q2 2023 rose by 4.6 percent, reaching 35.3 billion imperial gallons (BIG).
DEWA’s customer base also expanded, with a total of 1,184,711 customer accounts served by the end of Q2 2023, marking a growth of 14,998 customer accounts from the previous quarter.
However, while DEWA demonstrated strong financial performance, net profit for H1 2023 was influenced by factors such as an increase in net finance costs and depreciation. Net finance costs rose by AED 262 million due to an upsurge in EIBOR over the past year and reduced capitalised interest of new IPP projects. Additionally, depreciation increased by AED 190 million owing to new IPP projects that augmented DEWA’s generation capacity.
Saeed Mohammed Al Tayer, MD & CEO of DEWA, underscored the authority’s commitment to excellence, sustainability, and strategic growth, guided by the visionary leadership of Dubai’s rulers. He highlighted DEWA’s focus on innovation, digital transformation, and customer satisfaction, emphasizing the organization’s contribution to Dubai’s development plans.
Al Tayer also emphasized DEWA’s commitment to maintaining world-class infrastructure, aligning with Dubai’s growth trajectory and future needs.
DEWA’s strategy, underpinned by strong financial performance and adherence to ESG standards, aims to deliver consistent returns and sustainable growth, solidifying its position as a key contributor to Dubai’s progress.