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Dubai DEWA's Q2 net profit jumps 37% as demand for energy grows

August 12, 2022
oil and gas

State utility says it is reviewing plans for Empower IPO

The Dubai Electricity and Water Authority (DEWA) reported a 37% jump in Q2 2022 net profit at AED 2.61 billion ($711 million) as demand for energy rose with the resurgence in travel and tourism in Dubai.

Revenue for the period climbed 14% to AED 7.01 billion, DEWA said in a regulatory filing on Thursday to the Dubai Financial Market.

The government-owned utility, which listed shares in April in one of the largest public floats globally, said it will continue to provide a robust infrastructure to keep pace with rapid developments in Dubai and provide services to more than a million customers.

For H1, DEWA made a net profit of AED3.30 billion, up 33% on year, while revenue came in 15% higher year-on-year (YoY) at AED 12.08 billion.

Demand for energy in the first half of 2022 reached 23.27 TWh compared to 21.9 TWh in the first half of 2021. Nearly 10% of this generation is from solar, the utility said. Water demand in the same period grew by 6.4%.

By the end of the second quarter, DEWA had served 1,126,121 customers, up 5.12% YoY.

The utility is reviewing plans to IPO district cooling provider, Emirates Central Cooling Systems Corp., known as Empower. 'The timing and size of the same are under study and are subject to all the necessary approvals,' DEWA, which owns 70% of the subsidiary, said.

DEWA will pay a minimum dividend of AED 6.2 billion per year over the next five years. The first dividend payment of AED 3.1 billion is expected to be made in October 2022.