DEWA registers net profit of AED651 million in Q1

Dubai Electricity and Water Authority

Dubai Electricity and Water Authority (DEWA), the Emirate of Dubai’s exclusive electricity and water services provider, which is listed on the Dubai Financial Market (DFM), today reported its first quarter of 2024 consolidated financial results, recording quarterly revenue of AED 5.8 billion, EBITDA of AED 2.6 billion, operating profit of AED 995 million and net profit of AED 651 million.

“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 as reflected in 9 percent increase in EBITDA (the highest first quarterly EBITDA in DEWA’s history) and 11.6 percent increase in operating profit of the group. We will continue to focus on our core strategic objective of delivering sustainable growth, staying at the forefront of smart and innovative operational excellence and optimising returns for all our stakeholders,” said Saeed Mohammed Al Tayer, MD & CEO of DEWA.

“DEWA is a global role model in the power, water and district cooling sector, providing services to the highest standards of reliability, efficiency, and quality. We support the Dubai Economic Agenda (D33), which aims to double Dubai’s economy over the next decade. Our strategies, initiatives and capital commitments are aligned to achieving the ambitious energy transition goals outlined in the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy 2050, which aim to provide 100% of the required energy from clean energy sources by 2050," added Al Tayer.

DEWA’s quarterly consolidated revenue increased by 6.7 percent to AED 5.8 billion in 2024, and this was mainly driven by an increase in demand for electricity, water and cooling services. DEWA’s EBITDA was up by 9.0 percent to AED 2.6 billion, and its operating profit was up by 11.6 percent to AED 995 million. DEWA’s net cash from operations was up by AED 692 million to AED 3.3 billion, which is a 26.9 percent increase over the same period last year, demonstrating the company’s strong year- on -year cash flow generation capability.

In the first quarter of 2024, DEWA’s gross power generation soared to a high of 10.3 TWh marking a 6.2 percent increase from the 9.7 TWh recorded during the first quarter of 2023. Notably, DEWA generated 1.46 TWh of clean power during the quarter, which is a 19.8 percent increase over the same period of last year. This clean power accounted for 14 percent of the total power generated in Q1, 2024. DEWA is committed to using clean energy to maintain a sustainable generation mix to meet the consistently growing demand. DEWA experienced a noteworthy 7.24 percent increase in its quarterly peak demand compared to Q1, 2023, reaching 6.1 GW in Q1, 2024. The quarterly gross heat rate of 8,822 BTU/kWh achieved, represents a 5.26 percent improvement over the same period in the previous year. This highlights the company's unwavering commitment to operational excellence.

DEWA’s total desalinated water production in the first quarter of 2024 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 reached 401 Million Imperial Gallons (MIG) which is a 5.04 percent increase over previous year.

At the end of first quarter of 2024, DEWA had 1,224,560 customer accounts compared to 1,169,713 customer accounts a year ago, representing a 4.7 percent increase.

Ongoing projects are progressing satisfactorily. In the first quarter of 2024, DEWA commissioned three 132 kV substations and two hundred eighty one 11kV substations. Financial close for 2 new IPP/IWP projects, namely the 180 MIGD Hassyan Water Company and 1800 MW Shuaa 4 Solar PV plant was achieved during the quarter. At the end of the first quarter of 2024, the company’s installed generation capacity reached 16.27 GW with 2.63 GW of this capacity representing renewable energy. The company’s installed desalinated water production capacity is unchanged at 495 MIGD.

As per DEWA’s dividend policy, the Company expects to pay a minimum annual dividend of AED 6.2 billion in the first five years starting October 2022. The dividends are paid semi-annually in April and October. On 26 October 2023, DEWA distributed AED 3.1 billion as dividend for H1, 2023 to its shareholders, based on a record date of 18 October 2023. For H2, 2023, DEWA distributed AED 3.1 billion to its shareholders on April 26th, 2024 based on a record date of April 15th, 2024. The company expects to make its next dividend payment to shareholders for H1, 2024 in October, 2024.