Yesterday, Dubai Electricity and Water Authority announced its total financial results for the second quarter of 2023, as the authority recorded quarterly revenues of 7.3 billion dirhams, and net profits of 1.98 billion dirhams, while the authority’s total revenues during the first six months amounted to 12.7 billion dirhams, and net profit 2.7 billion dirhams.
The authority confirmed in a statement yesterday that at the end of the first half, the authority’s net cash flows resulting from operations rose to a record high of 837 million dirhams, reaching 5.4 billion dirhams, which represents a significant increase of 18.2% compared to the same period last year.
The consolidated annual revenue increase of DEWA for the first six months came by 5.4%, to reach 12.7 billion dirhams, mainly driven by an increase in demand for electricity, water and cooling services, as well as an increase in revenues from the authority’s other assets portfolio, as electricity services revenues increased by 5.7 percent. %, water services by 3.8%, and cooling services by 4.9%. Revenues from other assets of the Authority increased by 7.8%.
During the second quarter, the rate of increase in consolidated annual revenues rose to 4.1%, to reach 7.3 billion dirhams, driven by the increase in the volume of demand for electricity, water and cooling services, in addition to the increase in the revenues of the Authority’s other assets portfolio.
The volume of energy demand during the second quarter of this year reached 14.3 terawatt hours, compared to 14 terawatt hours during the same period in 2022. The heat rate for electricity (the amount of heat required to produce kilowatt-hours) in the authority during the second quarter was 8230 BTU/kWh, which represents an improvement of 4.2% compared to the same period last year, which indicates an increase in the efficiency of operational processes, as a result of DEWA’s efforts in the field of sustainability and environmental preservation.
During the second quarter, water demand reached 35.3 billion imperial gallons, an increase of 4.6%.
At the end of the second quarter, the authority provides its services to 1.184 million customer accounts, which represents an increase of 14.998 thousand over customer accounts in the first quarter of 2023.
Compared to the first half of 2022, DEWA’s net profits during the first half of 2023 were affected by the increase in net financing and depreciation costs. The net financing cost was higher by 262 million dirhams, as a result of the increase in EIBOR prices during the past 12 months, and also as a result of the decrease in the capital interest for new projects according to the independent energy producer system launched by the Authority.
In addition, the settlement increased to 190 million dirhams, as a result of the new projects, according to the independent energy producer system launched by the authority, which contributed to raising the production capacity of the authority.
The authority’s dividend policy includes paying a minimum dividend of 6.2 billion dirhams annually over the next five years, starting in October 2022. Dividends are paid twice each fiscal year, in April and October. The authority is expected to pay the next dividend payment of 3.1 billion dirhams for the first half in October.
Saeed Mohammed Al Tayer, Managing Director and CEO of Dubai Electricity and Water Authority, said: “We at DEWA continue the path of excellence and sustainable growth, guided by the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and the directives of His Highness Sheikh Hamdan. bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, and His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance. The authority’s continuous focus on achieving smart projects, innovation and accelerating the wheel of digital transformation resulted in enhancing the authority’s total revenues and improving the performance of operating cash flows over the first six months. Our results reflect our commitment to supporting the strategic priorities of sustainability, which focus on smart growth, enhancing customer happiness, global leadership and operational excellence, and attractive capital returns for shareholders.”
Al Tayer added: “In line with our strategy, we continue to provide a strong infrastructure that keeps pace with the rapid developments in Dubai, driven by sustainable economic growth, the implementation of the ambitious Dubai Urban Plan 2040, and the accompanying increase in population. Today, we continue to provide our services to more than 1.18 million customers in accordance with the highest leading international standards in availability, reliability, efficiency and safety for us and for future generations. He continued, “DEWA’s strategy focuses on achieving sustainable returns, adhering to the highest requirements of environment, society and governance, sustaining growth, and doubling the value of future growth for the authority’s shareholders.”
• An increase in consumer demand for electricity and water by 3.1% and 5.1%, respectively.
• Net cash flows amounted to 5.4 billion dirhams, an increase of 18.2%.
14.9 gigawatts of electricity production capacity
DEWA has a total production capacity of 14.9 GW, of which 2.4 GW is from renewable energy. In line with the Dubai Clean Energy Strategy 2050, DEWA added 300 megawatts of renewable energy production capacity during the second quarter of 2023. DEWA’s production capacity of desalinated water, which amounts to 490 million gallons per day, has not changed.
By the end of 2030, DEWA plans to have an installed capacity of 20 gigawatts of electricity and 730 million gallons of desalinated water per day. Of the 20 gigawatts, the authority plans to provide five gigawatts of renewable energy, representing 25% of the total production capacity. The authority plans to add 240 million gallons of desalination capacity using reverse osmosis technology.
7 new transport stations
By the end of the first half of 2023, DEWA had inaugurated seven new main transmission stations with a voltage of 132 kV, three distribution stations with a voltage of 33 kV, and 676 distribution stations with a voltage of 11 kV. Currently, the total number of distribution stations with a voltage of 33 kV in service is 74, while the number of distribution stations (with a voltage of 11 kV and 6.6 kV) is 43,557 stations.
2023-08-10 20:02:14
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