Dubai utility DEWA expects almost $2b in annual profit

Dubai: Dubai Electricity and Water Authority (DEWA) expects 2022 profit of Dh7.3 billion ($1.99 billion), CEO Saeed Al Tayer told CNBC Arabia on Friday, after listing as a public company this month.

He added that state utility DEWA has strong cash flows and will not need to take on debt.

DEWA this month raised $6.1 billion in the region’s biggest initial public offering (IPO) since Saudi Aramco.

DEWA and its subsidiaries, which serves 3.5 million people with over 1 million customers in Dubai, has assets worth up to Dh190 billion and recorded Dh23.8 billion revenues in 2021, growing annually by 2 per cent during between 2019 to 2021.

The utility giant, which reported Dh12.1 billion in core earnings during 2021, is widely considered to have a strong balance sheet with low net debt of just Dh17.6 billion last year.

With the power utility recently reiterating its targets like Dubai Net Zero Carbon Emissions Strategy 2050 and the Dubai Clean Energy Strategy 2050, DEWA aims to provide 100 per cent of Dubai’s energy production capacity from clean energy sources by 2050.