DEWA’s Record Q3 2023: Historic Revenue, Strong Growth

Dubai Electricity and Water Authority PJSC (DEWA), the exclusive provider of electricity and water services in the Emirate of Dubai, announced remarkable results for the third quarter of 2023. The company reported a historic quarterly revenue of AED 9.4 billion, an operating profit of AED 3.7 billion, and an EBITDA of AED 5.2 billion. Over the first nine months of the year, DEWA achieved a consolidated revenue of AED 22.2 billion, with an operating profit of AED 6.9 billion and EBITDA of AED 11.2 billion.

As of the end of Q3 2023, DEWA’s net cash from operating activities soared by AED 754 million to AED 9.8 billion, reflecting an impressive 8.3% increase compared to the corresponding period last year. The company attributes this robust growth to strong foundational elements supporting its financial performance.

DEWA’s third-quarter consolidated revenue surge of 10.2% to AED 9.4 billion was predominantly fueled by heightened demand for electricity, water, and cooling services, along with increased revenues from its diverse asset portfolio. The quarter witnessed a total power generation of 18.897 TWh, marking an 8.8% growth over the same period in 2022. Notably, green energy generation reached 1.626 TWh, indicating a substantial 29.9% increase. DEWA achieved a commendable gross heat rate of 8,042 BTU/kWh, reflecting a 2.5% improvement in operational efficiency.

Water desalination in Q3 2023 reached 38.7 billion imperial gallons, a 5.4% rise from the previous year. The customer base expanded to 1,200,312 accounts, representing a 5% increase compared to a year ago and a 15,601-account rise from Q2 2023.

Despite a twofold increase in finance costs, DEWA reported a third-quarter net profit that surpassed the same period last year by 6.9%. The semi-annual dividend cover ratio, based solely on the third quarter net profit, exceeds 1, affirming the company’s ability to cover its H2 2023 dividends from its Q3 profit.

For the first nine months of 2023, DEWA’s revenue growth of 7.4% was primarily driven by a 6.4% increase in electricity demand, 5.7% in water demand, and a 9.5% surge in cooling services revenue. Additionally, the company delivered 4.771 TWh of green power, marking a 34.5% increase compared to the same period last year.

HE Saeed Mohammed Al Tayer, MD & CEO of DEWA, expressed satisfaction with the achievements, stating, “We have achieved the highest quarterly revenue, operating profit, EBITDA, and net profit in DEWA’s history with an outstanding 9.9% growth in our EBITDA.” Al Tayer emphasized DEWA’s commitment to sustainability, customer happiness, operational excellence, and a shareholder strategy focused on consistent returns and high ESG standards.

As of the end of Q3 2023, DEWA’s installed generation capacity reached 15.1 GW, with 2.6 GW sourced from renewable energy. The company added 200 MW of green capacity during the quarter. Looking ahead to 2030, DEWA plans to add 240 MIGD of desalination capacity, with a total gross installed desalinated capacity reaching 730 MIGD. The gross generation installed capacity is expected to reach 20 GW, with 5 GW from renewable sources, representing 25% of the total generation.

DEWA showcased its commitment to emission reduction, achieving a year-to-date reduction of 1.29 million tonnes of CO2 emissions from core gas-fired generation and 1.8 million tons from the operating phases of the Mohammed bin Rashid Al Maktoum Solar Park.

In adherence to DEWA’s dividend policy, the company anticipates a minimum annual dividend of AED 6.2 billion in the first five years starting October 2022. The semi-annual dividends, distributed in April and October, amounted to AED 3.1 billion for H1 2023 and are projected to reach AED 3.1 billion for H2 2023, scheduled for distribution in April 2024.