DEWA posts AED2.6 billion net profit in first half of year… Revenue up 7.3%

Dubai Electricity and Water Authority (DEWA) posted revenue of AED13.7 billion in the first half of 2024, total earnings before interest, tax, depreciation and amortization (EBITDA) of AED6.6 billion, operating profit of AED3.3 billion and net profit after tax of AED2.6 billion.

• Dividend Distribution

In line with the authority’s dividend distribution policy, the company expects to pay dividends of at least AED6.2 billion annually for the first five years starting October 2022, with dividends paid semi-annually in April and October.

On April 26, 2024, the Authority distributed dividends worth AED 3.1 billion for the second half of 2023 to shareholders registered in the shareholder register on April 8, 2024.
In the first half of 2024, the Authority obtained the necessary approvals to distribute AED3.1 billion to shareholders from the stipulated due date of October 18, 2024.

Saeed Mohammed Al Tayer, Managing Director and CEO of Dubai Electricity and Water Authority, said: “Our financial results for the first half of the year reflect strong revenue growth of 7.3% and impressive growth in EBITDA, which increased by 8.9% compared to the same period last year. Demand for electricity and water increased by 6.7% and 4.3% respectively in 2024, reflecting Dubai’s continued growth.”

Al Tayer added: “In line with our strategic objectives and commitment to the vision of our wise leadership to make Dubai the best city in the world, DEWA is striving to become one of the best-run service organisations in the world. By 2030, our installed capacity will reach approximately 20 GW of electricity generation and 735 million gallons of desalinated water per day. Of this, approximately 5.3 GW will come from renewable sources, representing a 27% share of clean energy capacity in the energy mix. We will continue to strive to maintain the highest world-leading standards in production, transport and distribution efficiency, and to provide the best quality services to our customers. We will also strive to maintain our excellence and leadership in our transformation into a green and sustainable organisation, and support Dubai’s ambition to become carbon neutral by 2050.”

DEWA’s consolidated half-year revenue increased 7.3% from the first half of last year to a record high of AED13.7 billion by 2024, mainly due to increased demand for electricity, water and cooling services. The authority’s consolidated net profit fell 6.7% to AED2.6 billion in the first half of the year, mainly due to increased depreciation and the first collection of corporate tax in 2024.

Consolidated net profit fell 6.7% to AED2.6 billion, mainly due to the first implementation of corporate tax in 2024.

The authority’s consolidated revenue for the second quarter of 2024 increased by 7.8% to AED 7.9 billion, the authority’s second quarter earnings before interest, tax, depreciation and amortization (EBITDA) increased by 8.8% to AED 4 billion, and profit before tax increased by 5.9% to AED 2.1 billion.

In the first half of 2024, the agency’s total energy production reached 25.5 TWh, compared with 23.9 TWh in the same period of 2023, an increase of 6.7%.

Total clean energy production by the Authority reached 3.3 TWh, making clean energy 12.9% of the Authority’s total energy production in 2024. The total number of electricity and water customer accounts reached 1,236,845 accounts as of June 2024, an increase of 52,134 accounts (4.4%) from the end of June 2023. Total desalinated water production by the Authority during the first half of 2024 was approximately 71.3 billion gallons, an increase of 4.3% from the same period in 2023.

The authority’s total capacity reached 16,779 GW, including 2.86 GW of clean energy. The authority’s desalinated water production capacity remained unchanged at 495 million gallons per day.