Dewa’s fourth-quarter net profit jumps 25% on rise in power and water demand

Dewa’s fourth-quarter net profit jumps 25% on rise in power and water demand

The Dubai Electricity and Water Authority has reported a 25 per cent annual jump in fourth-quarter net profit as the utility’s revenue rose on the back of increased demand for electricity and water in the emirate.

Consolidated net profit of the company for the three-month period to the end of December surged to Dh1.5 billion ($408.4 million), Dewa said in a statement on Wednesday to the Dubai Financial Market (DFM), where its shares are traded.

Revenue for the September to December period rose by 14 per cent to Dh6.7 billion.

Consolidated net profit in the full 2022 fiscal year soared 22 per cent annually to about Dh8 billion. Revenue for the period jumped 15 per cent to Dh27.4 billion, the utility said.

Dewa achieved record results and delivered its best financial performance and growth in 2022.

The company focused on “sustainable growth, staying at the forefront of smart and innovative operational excellence and optimising returns for all its stakeholders, while minimising its environmental footprint”, Dewa said.

“For the year 2022, 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,” said Saeed Al Tayer, managing director and chief executive of Dewa.

“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.”

Demand for power in 2022 reached 53.2 terawatt hours (TWh), an annual jump of about 5.6 per cent.

Dewa’s peak demand in 2022 was 9.5 gigawatts, a 3.3 per cent year-on-year increase. Peak demand for 2022 and 2021 was achieved in July, Dewa said.

Last year, demand for water reached 136.9 billion imperial gallons, up nearly 6.5 per cent on an annual basis. Average customer power and water consumption in 2022 was higher than in 2021.

Dewa said it added 51,089 new customers last year, up nearly 4.6 per cent from 2021.

Relative to capacity, the utility’s minimum reserve margin in 2022 for power and water was 28 per cent and 15.2 per cent, respectively.

“Looking ahead, I am optimistic about our operating and financial outlook for 2023 and beyond,” Mr Al Tayer said.

“Dewa stands ready to support the Dubai Economic Agenda [D33], which aims to double the size of Dubai’s economy over the next decade.”

The company is well positioned to deliver on its 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 sources by 2050, Mr Al Tayer said.

On Wednesday, Dewa also announced plans to use ChatGPT technology to boost its digital offerings and support its services.

The move will make the company “the first utility globally and the first UAE government entity to use this new technology”, it said.

In April last year, Dewa was listed as a public company on DFM. In November, Dewa’s subsidiary Emirates Central Cooling Systems Corporation (Empower) raised more than Dh 2.6 billion through its IPO, which was 47 times oversubscribed.

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