Dewa's first-quarter net profit rises on growing power and water demand

Revenue for the three-month period increased by more than 7%

Dewa's net profit in the first quarter of 2023 rose by 1.25 per cent. Photo: Dewa

The Dubai Electricity and Water Authority's net profit in the first quarter of 2023 rose by 1.25 per cent as revenue increased on the back of rising demand for water, electricity, and cooling services in the emirate.

Net profit attributable to the shareholders of the company for the three-month period to the end of March surged to about Dh743.8 million ($202.5 million), Dewa said on Monday in a filing to the Dubai Financial Market where its shares are traded.

Revenue for the three-month period stood at Dh5.43 billion, up more than 7 per cent from the same period last year.

“Our reported results for the first quarter of 2023 have exceeded our expectations, reflecting the robust growth of Dubai,” said Saeed Al Tayer, managing director and chief executive of Dewa.

“Looking ahead, I reiterate our optimism about our operating and financial performance for 2023 and beyond.”

Dewa listed as a public company on the DFM in April, raising $6.1 billion in an oversubscribed offering.

The Dubai utility, which added 51,089 new customers last year, served 1,169,713 customers at the end of the first quarter of 2023, it said.

Dewa's quarterly revenue growth for electricity, water, and cooling services increased by 7.2 per cent, 7 per cent and 4.6 per cent, respectively, in the January to March period. Its other portfolio of assets grew their revenue by 11.2 per cent.

In the first quarter, Dewa also added 100 megawatts of solar capacity. The company’s installed generation capacity at the end of the three-month period stood at 14.6 gigawatts, with 2.1 gigawatts of this capacity from renewable energy.

Mohammed bin Rashid Al Maktoum Solar Park, being built by Dewa, is able to generate 2,327MW of capacity, and now accounts for more than 15 per cent of the emirate's energy production capacity.

The mega project is planned to have a total capacity of 5,000MW by 2030, officials said earlier this month.

The company is well positioned to deliver on its energy transition ambitions to achieve the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Emissions Strategy 2050, to provide 100 per cent of the energy production capacity from clean sources by 2050, said Mr Al Tayer.

“Dewa's efforts support the Dubai Economic Agenda, D33, which aims to double the size of Dubai’s economy over the next decade,” he said.

Dewa has also boosted operations through the use of technology.

It launched its second nanosatellite on a SpaceX rocket from Vandenberg Air Force Base in California in mid-April that will help further enhance its network, making it the first utility company in the world to launch nanosatellites to improve operations.

Utility companies like Dewa can use satellite technology to monitor and map their infrastructure and track the environmental impact their operations have. The data can also help these companies improve their services.

In February, Dewa announced plans to use ChatGPT technology to boost its digital offerings and support its services.

The move will make the company “the first utility globally and the first UAE government entity to use this new technology”, it said at the time.