Dubai Electricity and Water Authority (Dewa) has recorded solid growth during the first quarter with revenues of AED5.068 billion ($1.38 billion), which surged by 15% over last year, and a net profit of AED691 million ($188 million).
The growth was mainly driven by an increase in consumption across all sectors and the transition to a normalised tariff structure at the beginning of this year.
Rise in hospitality and commercial activities in Dubai, in part due to the easing of Covid-related restrictions worldwide, has contributed to the robust demand growth, it stated.
Compared to the first quarter of 2021, electricity revenue rose 17.5% for the first three months, water revenue up 20.2% and district cooling revenue up 17.6%.
Dewa's consolidated gross fixed assets grew by AED2.8 billion to AED204.2 billion as of March 31, 2022 compared to AED201.4 billion on 31st December 2021.
On its solid performance, Saeed Mohammed Al Tayer, MD and CEO, said: "Dewa meets the increasing demand for electricity and water in Dubai according to the highest standards of reliability, efficiency and quality, thanks to the best-in-class infrastructure and sound governance system across the group. The strong first quarterly result is a testament to our resilient operating business model and continues a track record of consistent growth."
"We have ample liquidity on our balance sheet to allow us to pursue growth opportunities. DEWA will continue to make disciplined capital investments, achieving cost savings while growing our footprint and maintaining a high level of safety, quality and customer happiness. We are committed to creating incremental shareholder value and to providing dividend visibility to our shareholders," he added.
Dewa currently provides its services to 3.5 million Dubai residents and the emirate's active daytime population of over 4.7 million. These numbers are expected to grow to 5.8 million and 7.8 million, respectively, by 2040, he stated.
The Dubai utility's growth plans are aligned with Dubai's 2040 Urban Master Plan, Dubai's Clean Energy Strategy 2050 and Dubai's Net Zero Carbon Emissions Strategy 2050, which aims to provide 100% of Dubai's energy production capacity from clean energy sources by 2050, he added.-TradeArabia News Service