Dubai Electrical energy and Water Authority PJSC (ISIN: AED001801011) (image: DEWA), the unique supplier of electrical energy and water companies of the Emirate of Dubai, listed on the Dubai Monetary Market (DFM), at this time introduced its consolidated monetary outcomes for the third quarter of 2023, with document quarterly income of AED 9.4 billion, working revenue of AED AED 3.7 billion and EBITDA of AED 5.5 billion. For the primary 9 months, DEWA’s consolidated revenues totaled AED 22.2 billion, with working revenue of AED 6.9 billion and EBITDA of AED 11.2 billion.
By the tip of the third quarter of 2023, the corporate’s internet money circulate from operations elevated by a strong AED 754 million to AED 9.8 billion, representing a whopping improve of 8.3% in comparison with the identical interval final 12 months.
Strong fundamentals drive document quarterly progress in DEWA’s earnings assertion
DEWA’s consolidated income improve of 10.2% to AED 9.4 billion within the third quarter was primarily pushed by a rise in demand for electrical energy, water and cooling companies in addition to a rise in revenues from DEWA’s different asset portfolio.
Complete electrical energy technology within the third quarter was 18,897 TWh, in comparison with 17,375 TWh in the identical quarter in 2022, a progress of roughly 8.8%. A reliability issue of 99.5% was used. Complete inexperienced vitality technology throughout the quarter was 1,626 TWh, a rise of 29.9% in comparison with the identical interval in 2022. DEWA achieved a gross heating fee of 8,042 BTU/kWh, which is an enchancment of two.5% in comparison with final 12 months and displays larger operational effectivity on account of the corporate’s targeted sustainability and optimization efforts.
Water desalination reached 38.7 billion imperial gallons (BIG) within the third quarter of 2023, a rise of 5.4% in comparison with the identical interval final 12 months. As of September 30, 2023, DEWA serves 1,200,312 clients, which is 57,159 (or 5%) extra accounts than a 12 months in the past, and a rise of 15,601 accounts in comparison with the second quarter of 2023.
Regardless of a doubling of financing prices, DEWA’s third quarter internet revenue exceeds the revenue of the identical interval final 12 months by 6.9%. The semi-annual dividend protection ratio, primarily based solely on third-quarter internet revenue, is greater than 1, indicating that the corporate can cowl its dividend for the second half of 2023 primarily based on third-quarter earnings alone.
Through the first 9 months of 2023, DEWA’s income progress of seven.4% was primarily pushed by 6.4% electrical energy demand progress, 5.7% water demand progress and 5.7% income progress cooling companies by 9.5%. As well as, the corporate provided 4,771 TWh of inexperienced vitality, a rise of 34.5% in comparison with the identical interval final 12 months.
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“At DEWA, we proceed our journey of excellence and sustainable progress, guided by the imaginative and prescient of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and the directives of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Govt Council, and His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance of the UAE.
I’m happy to report main achievements and record-breaking milestones for DEWA on this quarter. We achieved the best quarterly income, working revenue, EBITDA and internet revenue in DEWA historical past with an impressive 17.6% progress in our EBITDA. Our electrical energy technology progress of 8.8%, gross put in capability of 15.1 GW, of which 17% comes from renewable sources, peak load of 10.4 GW and variety of clients of greater than 1.2 million, are the best ever reported. Immediately, our gross infrastructure funding exceeds AED 215 billion, and our CO2 emissions discount to date this 12 months has exceeded 3 million tonnes. This quarter’s revenue alone is ample to satisfy our dividend obligations for the second half of 2023,” stated HE Saeed Mohammed Al Tayer, MD & CEO of DEWA.
“We’re dedicated to pursuing our management function in sustainability, rising buyer satisfaction, main operational excellence globally and future-proofing our enterprise mannequin. DEWA’s shareholder technique is concentrated on delivering constant returns, sustaining the best environmental, social and governance (ESG) requirements, delivering sustainable progress and rising our progress worth over time for our buyers,” stated Al Tayer.
Reaching progress
By the tip of the third quarter of 2023, the corporate’s put in technology capability reached 15.1 GW, of which 2.6 GW got here from renewable vitality sources. DEWA added 200 MW of inexperienced capability within the third quarter of 2023.
By 2030, DEWA will add 240 MIGD of desalination capability, utilizing reverse osmosis expertise. By then, DEWA’s complete gross put in desalination capability will attain 730 MIGD. As well as, the corporate’s gross put in manufacturing capability will attain 20 GW. Of this 20 GW capability, DEWA may have 5 GW of put in renewable capability, representing 25% of technology coming from renewable sources.
Emission discount
Thus far, DEWA has decreased 1.29 million tonnes of CO2 emissions from its nuclear fuel technology and 1.8 million tonnes from the operation phases of the Mohammed bin Rashid Al Maktoum Photo voltaic Park.
Dividend coverage
In keeping with DEWA’s dividend coverage, the corporate expects to pay a minimal annual dividend of AED 6.2 billion within the first 5 years from October 2022. The dividends are paid semi-annually in April and October. On October 26, 2023, DEWA distributed AED 3.1 billion as dividend for the primary half of 2023 to its shareholders, primarily based on the document date of October 18, 2023. The upcoming dividend of AED 3.1 billion for the second half of 2023 will go to anticipated to be paid out in April 2024.
