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Dewa net profit hits Dh3.17 billion for third quarter

One-time special dividend of Dh 2.03 billion to be paid to shareholders in December

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), on Thursday reported its third quarter 2022 financial results, recording quarterly revenue of Dh8.55 billion and net profit of Dh3.17 billion. Year to date, Dewa’s revenue is Dh 20.63 billion and net profit is Dh6.47 billion.

Demand driven robust financial performance

Dewa’s first 9 month revenue increase of 15 per cent to Dh20.63 billion was mainly driven by an increase in demand and a transition to normalised tariff structure. Energy demand in Dubai during the first 9 months of 2022 increased by 5 per cent compared to the same period in 2021. Similarly, water demand in the same period grew by 6.4 per cent.

Demand for energy in the first 9 months of 2022 reached 40.7 TWh compared to 38.6 TWh in the first 9 months of 2021. Further, Dewa’s peak demand in the first 9 months of 2022 was 9.5 GW, which represents a 3.3 per cent increase over the same period of last year. For the year 2022 and 2021, Dewa achieved peak demand in July.

By the end of the third quarter, Dewa served 1,143,153 customers, representing a 4.89 per cent increase from the same time last year. Accordingly, Dewa has added 17,032 new customers since Q2, 2022.

For the third quarter of 2022, Dewa generated 17.3 TWh, representing a 3.59 per cent increase from the same period last year. Similarly, Dewa produced 36.7 Billion Imperial Gallons of desalinated water, representing a 6.59 per cent increase.

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“In line with the vision of the wise leadership to strengthen Dubai’s position as a leading global financial and economical hub we achieved a profit for the first 9 months of 2022 which is nearly at par with our full year net profit of 2021. These record results are a testament to our steadfast focus on delivering our strategic priorities of sustainable and innovative growth. We are well positioned to deliver the best full year financial performance in our history. Moreover, we have made sustained progress towards unlocking shareholder value by paying our first dividend of Dh3.1 billion in Oct, 2022, by announcing the intention to float our 70 per cent-owned subsidiary Empower and by recommending the payment of a one-time special dividend of Dh 2.03 billion to be paid to our shareholders in December. For the financial year 2022, we expect to return Dh8.23 billion in dividends to our shareholders,” said Saeed Mohammed Al Tayer, MD & CEO of Dewa.

“Dewa offers an excellent value proposition that is backed by record earnings growth, predictable cash flows and a defined dividend policy, collectively reaffirming our ongoing commitment to continue to unlock value for our shareholders.” added Al Tayer.