DEWA’s Q1 2023 net profit up 10.4% to $208m

Dubai Electricity and Water Authority (DEWA) has reported a 10.4 per cent increase in first-quarter net profit to $208m (Dhs763m), driven by higher energy and water demand in the city.

The utility company’s revenue for the first three months of the year hit Dhs5.44bn, up 7.3 per cent year-on-year (YoY). For the last twelve months, DEWA’s total revenue was Dhs28bn and its net profit was Dhs8.1bn.

“Quarterly revenue growth for electricity, water and cooling services increased by 7.2 per cent, 7.0 per cent and 4.6 per cent respectively. DEWA’s other portfolio of assets grew their revenue by 11.2 per cent,” the utility major said in a bourse filing while noting that these were the key contributors to its financial performance.

DEWA reported its Q1, 2023 consolidated financial results, recording quarterly revenue of AED 5.44 billion and net profit of AED 763 million. #DEWA #DEWANews pic.twitter.com/BGANrOAFl9

— DEWA | Official Page (@DEWAOfficial) May 8, 2023

The company said the demand for power in Q1 2023 reached 9.66 terawatt-hours (TWh), a 5.3 per cent increase from 9.17 TWh during the same period in 2022. It said the average customer power consumption in the first quarter was higher than the 2022 levels.

“Our reported results for the first quarter of 2023 have exceeded our expectations, reflecting the robust growth of Dubai. Looking ahead, I reiterate our optimism about our operating and financial performance for 2023 and beyond,” said Saeed Mohammed Al Tayer, managing director and CEO of DEWA.

The utility firm said the demand for water in the city jumped by 6.25 per cent to reach 32.3 billion imperial gallons (BIG) in Q1 2023 compared to 30.4 BIG during the same period while average customer water consumption was higher than that of 2022.

Founded in 1992 following the merger of the Dubai Electricity Company with the Dubai Water Department, DEWA is the exclusive electricity and water utility provider to Dubai’s 3.5 million residents.

The company served 1.2 million in the first three months of the year, an increase of 12,212 customers from Q4 2022 and an increase of 51,022 compared to the first quarter of 2022.

DEWA’s growth prospects

Meanwhile, DEWA plans to have a gross installed capacity of 20 gigawatts (GW) and 730 million imperial gallons per day (MIGD) of desalinated water by 2030. The company plans to obtain 5 per cent of the 20 GW from clean sources of energy while 240 MIGD of desalination capacity will be achieved using reverse osmosis technology.

DEWA commissioned four 132 kV substations and three 33kV substations at the end of the first quarter of 2023. The company’s installed generation capacity at the end of Q1 2023 stands at 14.6 GW with 2.1 GW of this capacity from renewable energy.

The group owns 56 per cent of district cooling services provider Empower and comprises several other businesses including the manufacturer and distributor of bottled water Mai Dubai, digital business solutions company Digital DEWA and Etihad ESCO, a company focused on the development and implementation of energy-efficient solutions.

The utility giant became the first utility in the world to enhance its services with Microsoft’s artificial intelligence technology ChatGPT in February. It plans to integrate ChatGPT technology into its services to customers and employees through Moro Hub, a subsidiary of Digital DEWA.

The company plans to use ChatGPT to deliver integrated and advanced services that enhance productivity and meet current and future needs.

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