Dubai: The Dubai Electricity and Water Authority (Dewa) announced an 8.6 per cent increase in income in the first six months of 2011, according to a statement posted on Nasdaq Dubai bourse Tuesday.
Dewa's income was Dh1.63 billion in 2011, up from Dh1.5 billion in the same period of 2010.
The statement also revealed that Dewa's borrowing fell in the first half of 2011 to Dh26.5 billion at the end of June to Dh31 billion in December 2010.
A loan from Dubai Islamic Bank was fully repaid during this period, and Dewa also repaid Dh5.4 billion against loan from a consortium of banks.
But total assets fell in the first half of 2011 to Dh92.6 billion from Dh95.7 billion in the same period of 2010.
Risk factor
The statement claimed that Dewa's activities exposed it to a variety of financial risks, including credit, liquidity and the markets, which include currency, price and cash flow and fair value interest rate risk.
In terms of Dewa's cost of sales, the statement showed an increase up to Dh3.7 billion in the first half of 2011 while power generation and desalination expenditure increased to Dh2.9 billion.
Dewa pays about Dh529 million in salaries to its staff and Dh31.3 million in bonuses and Dh24.7 million in end-of-service benefits every six months.
Dewa paid Dh374 million in administration expenses in the first half of 2011.
Electricity, water, power revenue soars 44.5%
The revenue of the Dubai Electricity and Water Authority increased 44.5 per cent in the first half of 2011, according to a Dubai Nasdaq statement Tuesday.
The statement said that in terms of revenues, electricity, water as well as demand, consumption and connections totalled Dh6.6 billion in the first half of 2011, up from Dh4.6 billion in the first period of 2010.
The revenues from electricity alone increased to Dh4.8 billion from Dh3.32 billion while water consumption fetched Dh1.5 billion.
Moreover, other charges have brought in an estimated Dh278.9 million.
Talking to Gulf News, Saeed Mohammad Al Tayer, Managing Director and Chief Executive of Dewa, attributed the increase in Dewa's revenues to an increase in the number of consumers in Dubai.
"The number of Dewa's consumers has increased by 5 per cent this year which automatically led to a remarkable rise in water and electricity revenue," he said.
"People are still moving to Dubai and demand for water and electricity is increasing," Al Tayer said.
He added that electricity and water consumption in Dubai is expected to grow further.
Dewa has strengthened its slab system in tariff structure in recent months that might have also contributed to the rise in revenue.
