Dubai Electricity and Water Authority (Dewa) registered consolidated net profit of AED8 billion ($2.2 billion) for FY 2022, while its revenue surged by 15% to hit AED27.4 billion ($7.4 billion) delivering sustainable growth owing to its smart and innovative operational excellence.
Announcing its full year 2022 preliminary and unaudited consolidated financial results, Dewa said its standalone net profit rose to AED11.1 billion, which included AED4.4 billion of other income.
The key drivers of this other income include AED2.3 billion dividend received from Empower and AED1.67 billion of profit from the sale of Empower shares.
For the year 2022, Dewa delivered on its core strategic objective, which is focused on delivering sustainable growth, staying at the forefront of smart and innovative operational excellence and optimising returns for all its stakeholders whilst minimising its environmental footprint.
Accordingly, Dewa’s 2022 annual consolidated revenue increase of 15% to AED27.35 billion was mainly driven by an increase in demand for electricity and water and a transition to normalised tariff structure.
According to Dewa, the demand for power in 2022 reached 53.2 TWh compared to 50.4 TWh in 2021, representing a 5.56% increase.
Further, its peak demand in 2022 was 9.5 GW, which represents a 3.3% increase over the same period of 2021.
For the year 2022 and 2021, the utility achieved peak demand in the month of July. Average customer power consumption in 2022 was higher than that of 2021.
Dewa’s annual gross heat rate for power was 8,604 BTU / kWH, which is the best achieved in its operational history, reflecting our targeted sustainability and environmental efforts. In addition, Dewa’s overall power plant reliability factor was 99.93%, exceeding the company’s targets, and demonstrating the company’s commitment towards operational excellence.
Demand for water in 2022 reached 136.9 billion imperial gallons (BIG) compared to 128.6 BIG, representing a 6.45% increase. Average customer water consumption in 2022 was higher than that of 2021.
Relative to capacity, Dewa’s minimum reserve margin in 2022 for power and water was 28% and 15.2% respectively.
On the solid performance, MD & CEO Saeed Mohammed Al Tayer said: "For the full year 2022, we delivered a consolidated net profit of AED 8.0 billion, which is an increase of 22% over the full year 2021. Relative to 2021, our gross profit, operating profit and net profit margins increased."
"For the year 2022, Dewa had promised to pay AED 6.2 billion in dividends. Instead, Dewa intends to pay AED 9.9 billion in dividends to its shareholders. The delivery of our strategy has translated into exceptional returns to our shareholders," he noted.
"Looking ahead, I am optimistic about our operating and financial outlook for 2023 and beyond. Dewa stands ready to support the Dubai Economic Agenda (D33), which aims to double the size of Dubai’s economy over the next decade," he stated.
Al Tayer said Dewa's strategy, growth pillars and capital commitments are 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% of the energy production capacity from clean energy sources by 2050, while supporting the strong demand for our exclusive portfolio of products and services in Dubai.
"Dewa’s shareholder strategy is focused on delivering consistency of returns, durability of growth and compounding of our growth value over time, which forms the bedrock of our core value proposition to our investors," he added.-TradeArabia News Service
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