DEWA powers up to Dh2.7 billion in H1-2023 net profit, revenue hits Dh12.7 billion
Profit dips from year-ago because of higher finance, depreciation costs
Dubai: The Dubai utility DEWA powered its way to a Dh2.7 billion net profit, which came to Dh12.7 billion in H1-23 revenues helped by higher usage of its services by the emirate’s expanding user base - both individual and business clients.
But compared to a year ago, the profit total comes in lower, set off by a combination of higher net financing costs and depreciation.
The DEWA board of directors have approved a Dh3.1 billion payout as dividend for first-half of the year. This will be paid in October.
DEWA shareholders take note - the last entitlement date for a share of the Dh3.1 billion dividend is October 16, with the ex-dividend date being October 17.
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“Net finance costs were higher by Dh262 million as a result of an increase in EIBOR during the last 12 months,” said a DEWA statement. “And as a result of a reduction in capitalised interest of new IPP projects that have been commissioned.
“In addition, depreciation has increased by Dh190 million due to new IPP projects that were commissioned, adding to DEWA’s generation capacity.”
In the first six months of 2022, DEWA’s net profit tally was Dh3.3 billion.
But DEWA is keeping its focus trained strictly on the medium-term when it comes to costs and returns.
“We continue to maintain a robust infrastructure and services to keep pace with rapid developments in Dubai driven by the sustainable economic growth, execution of the ambitious Dubai 2040 Urban Master Plan and the associated increase in population,” said Saeed Mohammed Al Tayer, Managing Director and CEO.
Today we provide world leading services to over 1.18 million customers at the highest standards of availability, reliability, efficiency and safety, and we are committed to future-proofing the same.
Cash in hand
It’s got the resources to draw on.
By end June, the DFM-listed company’s net cash from operating activities increased a ‘record Dh837million to Dh5.4 billion’. This is an 18.2 per cent increase versus the same period for the last year.
How did the DEWA service usage stack up?
Through the six months, revenue growth for electricity, water and district cooling was higher by 5.7, 3.8 and 4.9 per cent. DEWA’s other asset portfolio saw revenues gain 7.8 per cent.
In the April-June period, revenues overall were Dh7.3 billion, higher by 4.1 per cent.
Demand for water in the second quarter came to 35.3 billion imperial gallons, a 4.6 per cent increase.
At the halfway mark of the year, DEWA was serving 1.184 million customer accounts, representing an increase of 14,998 from the first quarter.