The Dubai Electricity and Water Authority (DEWA) announced a 15% increase in income to Dhs5.068 billion in the first quarter of 2022, with a net profit of Dhs691 million.
In the first quarter of this year, energy revenue is up 17.5% compared to Q1 2021, water revenue is up 20%, and district cooling revenue is up 17.6%.
DEWA’s consolidated gross fixed assets increased by Dhs2.8 billion to Dhs204.2 billion as of March 31, 2022, up from Dhs201.4 billion on December 31, 2021.
DEWA currently serves 3.5 million Dubai residents as well as the emirate’s active daytime population of approximately 4.7 million. According to the state news agency WAM, these figures are predicted to rise to 5.8 million and 7.8 million, respectively, by 2040.
DEWA stated that its expansion strategy is in line with Dubai’s Net Zero Carbon Emissions Strategy 2050, which seeks to provide 100% of Dubai’s energy production capacity from clean energy sources by 2050.
Empower signed Heads of Terms with Dubai Airports City Corporation on October 27, 2021, for the possible acquisition of district cooling assets. The transaction is expected to close in the second quarter of 2022 for approximately Dhs1.05 billion. Empower signed a new bridge financing agreement for Dhs918m on March 29, 2022, to fund this potential transaction.
DEWA raised $6.1 billion in the largest initial public offering in Europe and the Middle East in over two years in April. It issued nine billion shares at Dhs2.48 each, giving it a market capitalization of $33.8 billion. DEWA nearly increased the size of the stock it sold to 18%.
DEWA has set a dividend policy based on the company’s excellent cash flow and earning potential. In October 2022, an interim dividend payment of Dhs3.1 billion is expected.
“We have sufficient liquidity on our balance sheet to pursue expansion prospects.” DEWA will continue to make prudent capital expenditures in order to reduce costs while expanding our reach and maintaining a high level of safety, quality, and customer satisfaction. “We are committed to increasing shareholder value and providing dividend visibility to our shareholders,” stated DEWA MD and CEO Saeed Mohammed Al Tayer.
DEWA said this month that the total length of transmission and distribution electrical lines in Dubai has reached 41,930 kilometers, while the total length of water transmission and distribution lines has reached 13,592 kilometers by the end of 2021.
