Dewa reports 8% rise in third-quarter profit on consumption boost

The increase in income was despite a more than doubling of the company's finance costs in the reported quarter

The Mohammed bin Rashid Al Maktoum Solar Park in Dubai. Photo: The Mohammed bin Rashid Al Maktoum Solar Park

The Dubai Electricity and Water Authority (Dewa) reported an 8 per cent rise in its third-quarter profit, driven by an increase in demand for the utility’s electricity, water and cooling services.

Net profit attributable to the shareholders of the company in the three months that ended in September climbed to Dh3.33 billion ($910 million), Dewa said on Friday in a filing to the Dubai Financial Market, where its shares are traded.

The higher profit came despite the company’s finance costs more than doubling to Dh492.6 million in the third quarter.

Its revenue during the period rose by more than 10 per cent to Dh9.42 billion.

“The profit from this quarter alone is sufficient to meet our dividend obligations for the second half of 2023,” said Saeed Al Tayer, managing director and chief executive of Dewa.

“Dewa’s shareholder strategy is focused on delivering consistent returns, upholding [the] highest environmental, social, and governance (ESG) standards and delivering sustainable growth,” Mr Al Tayer said.

The company’s Dh3.1 billion dividend for the second half of 2023 is expected to be paid in April 2024, Dewa said.

Dewa’s total power generation in the third quarter reached nearly 19 terawatt-hours, up from 17.38 terawatt-hours in the same period in 2022.

Meanwhile, water desalination in the latest reported quarter reached 38.7 billion imperial gallons, a more than 5 per cent increase over the same period a year earlier.

The utility served more than 1.2 million customers at the end of the third quarter, it said.

Last month, Dewa commissioned the 200-megawatt second unit of the parabolic basin complex in the fourth phase of the Mohammed bin Rashid Al Maktoum Solar Park.

This phase, which uses the independent power producer model, with investments of up to Dh15.78 billion, is set to provide clean energy for about 320,000 homes and reduce carbon emissions by 1.6 million tonnes per year.

The 950-megawatt fourth phase is the largest single-site project in the world that combines concentrated solar power and photovoltaic technology.

The Mohammed bin Rashid Al Maktoum Solar Park will have a total capacity of 5,000MW and will reduce carbon emissions by 6.5 million tonnes annually when it is fully completed in 2030.

Dewa, which raised Dh22.4 billion in its initial public offering last year, said net profit in the first nine months of 2023 fell by 4 per cent to about Dh6 billion while revenue gained more than 7 per cent.

Finance costs during the period nearly doubled to Dh1.4 billion.