First quarter 2022 numbers all three core lines generating higher growth, including that from district cooling. Image Credit: Ahmed Ramzan/Gulf News

Dubai: In its first results after the hugely successful IPO, DEWA recorded a substantial Dh5.08 billion in revenues and Dh691 million in net profit. Key metrics were also in strong growth mode; compared to the first quarter of 2021, electricity revenue is up 17.5 per cent, water by 20.2 per cent, and district cooling revenue is 17.6 per cent higher.

DEWA will make an interim dividend payment of Dh3.1 billion in October.

The increase in revenue was due to increase in consumption as well as a ‘transition to a normalized tariff structure’ at the start of the year. Plus, there were higher proceeds from the rise in hospitality and commercial activities in Dubai, in part due to the easing of Covid-related restrictions worldwide.

Liquidity in hand

“We have ample liquidity on our balance-sheet to allow us to pursue growth opportunities,” said Saeed Mohammed Al Tayer, Managing Director and CEO. “DEWA will continue to make disciplined capital investments, achieving cost savings while growing our footprint. We are committed to creating incremental shareholder value.”

It was on April 12 that DEWA listed on DFM after a record-setting IPO, and saw its stock price zoom within minutes of opening. The stock is at Dh2.61 ahead of Friday's opening.

DEWA’s consolidated fixed assets grew by Dh2.8 billion to Dh204.2 billion by March end, against the Dh201.4 billion at end December. “The strong first quarterly result is a testament to our resilient operating business model and continues a track record of consistent growth,” said Al Tayer.

DEWA currently provides services to 3.5 million Dubai residents, and the emirate’s active daytime population of over 4.7 million. These are expected to grow to 5.8 million and 7.8 million, respectively, by 2040. 

More revenue generators
In October 2021, Empower, in which DEWA has a majority stake, signed 'Heads of Terms' with Dubai Airports City Corporation for the potential acquisition of district cooling assets. The acquisition is expected to be completed in the second quarter of 2022 for an estimated Dh1.05 billion.

On March 29 2022, Empower entered into a new bridge loan agreement of Dh918 million to fund this potential acquisition.