DEWA PJSC announces record annual operating and financial results for the year 2023

Dubai Electricity and Water Authority PJSC (ISIN: AED001801011) (Symbol: DEWA), the Emirate of Dubai’s exclusive electricity and water services provider, which is listed on the Dubai Financial Market (DFM), today reported its full-year 2023 preliminary and unaudited consolidated financial results, recording consolidated full-year revenue of AED 29.2 billion, net profit of AED 7.9 billion and quarterly revenue of AED 7.1 billion and net profit of AED 1.8 billion. The full-year audited results are expected to be released in the first week of March 2024.

DEWA’s strategy delivers record financial performance

DEWA’s annual consolidated revenue increased by 7.0% to AED 29.2 billion in 2023 which was mainly driven by an increase in demand for electricity, water and cooling services. DEWA is focused on its core strategic objective of delivering sustainable growth, staying at the forefront of smart and innovative operational excellence and optimizing returns for all its stakeholders whilst minimizing its environmental footprint.

Annual Operating Performance Summary:

The system demand for power soared to a high of 56.5 TWh in 2023 marking a 6.3% annual increase from the 53.2 TWh recorded in 2022. Notably, DEWA generated 6.2 TWh of clean power during the year, which is a 32.7% increase over the previous year. This clean power accounted for 11% of the total power generated in 2023. DEWA is committed to using clean energy to maintain a sustainable generation mix to meet the consistently growing demand.

DEWA experienced a noteworthy 9.0% increase in its annual peak demand compared to 2022, reaching 10.4 GW in 2023. The annual gross heat rate of 8,365 BTU/kWh achieved, represents a 2.79 % improvement over the previous year and is the best in DEWA’s history. The power plant's annual reliability factor was sustained above the target of 99.70%. These achievements highlight the company's unwavering commitment to operational excellence.

The system-desalinated water demand in 2023 grew by 5.2% compared to the previous year, reaching a record of 144.1 Billion Imperial Gallons (BIG). The peak daily desalinated water demand reached 434 MIG which is a 4.91% increase over the previous year.

At the end of 2023, DEWA is serving 1,211,475 customers, having added 53,974 customer accounts in the year—an impressive 4.66% increase over the previous year. DEWA achieved a global milestone by recording the lowest electricity Customer Minutes Lost in the year 2023, with a low 1.06 minutes per customer, surpassing its previous record of 1.19 minutes per customer in 2022.

Quarterly Operational Performance Summary:

In the fourth quarter of 2023, DEWA continued its upward trajectory by generating 13.4 TWh, a notable 7.66% increase over the same period in 2022. During this quarter, DEWA achieved a 26.79% increase in clean power generation, contributing 1.4 TWh to the overall generation mix. Simultaneously, desalinated water production in the quarter reached 36.2 BIG, showcasing a 5.3% increase. DEWA expanded its customer base by 11,163 customer accounts during the quarter, reflecting consistent growth.

Quote

“At DEWA, we continue our journey of excellence and sustainable growth, guided by the vision 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 Executive Council of Dubai, 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 am pleased to report that we have delivered significant results and record-breaking milestones for DEWA. We have achieved the highest annual revenue and operating profit in DEWA’s history. Our electricity generation growth of 6.1%, total installed capacity of 15.7 GW with around 17% contributed by renewable sources, peak load of 10.4GW and customer accounts exceeding 1.2 million, are the highest ever reported.”

said HE Saeed Mohammed Al Tayer, MD & CEO of DEWA.

I am optimistic about our operating and financial outlook for 2024 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. Our strategy, growth pillars and capital commitments are well positioned to deliver on our 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,”

added Al Tayer.

“DEWA’s shareholder strategy is centred on long-term value creation through steadfast stewardship, strategic infrastructure investment and a commitment to continuous innovation. By adopting a customer-centric approach and embracing ESG leadership, we aim to deliver sustainable returns and position the company as a reliable investment choice,”

noted Al Tayer.

Delivering growth

By the end of 2023, the Company’s installed generation capacity was 15.7 GW with 2.6 GW of this capacity coming from clean energy sources.

At the end of 2023, DEWA’s 829 MW phase 4 Al Aweer station was 94.5% complete, and 250 MW of the Hatta hydro station was 82.5% complete. DEWA expects to add additional solar capacity as part of its ongoing IPP projects. The company’s total installed generation capacity is expected to reach 20 GW by 2030. Of this 20 GW capacity, DEWA will have 5.3 GW representing around 27% of the generation, sourced from clean sources.

By 2030, DEWA will add 240 MIGD of desalination capacity, using seawater reverse osmosis technology. By that time, DEWA’s total installed desalinated capacity will reach 735 MIGD.
In 2023, DEWA grew its substation network.

DEWA grew its fibre optic cable network by 364 km to 3,998 km in 2023.

At the end of 2023, DEWA’s water reservoir capacity stood at 911 MIG. Additional capacity is under construction.

Emission Reduction

In the year 2023, DEWA has reduced 9.1 million tonnes of CO2 of which 6.6 million tonnes of CO2 emissions by its efficiency improvement and emission reduction initiatives and 2.5 million tonnes from the operating phases of the Mohammed bin Rashid Al Maktoum Solar Park.

Corporate Actions: Dividends, Dividend policy, and General Assembly
As per DEWA’s dividend policy, the Company expects to pay a minimum annual dividend of AED 6.2 billion in the first five years starting October 2022. The dividends are paid semi-annually in April and October. On 26 October 2023, DEWA distributed AED 3.1 billion as a dividend for H1, 2023 to its shareholders, based on a record date of 18 October 2023. The upcoming dividend of AED 3.1 billion for H2, 2023 is expected to be distributed in April 2024, subject to approval by DEWA’s shareholders at the general assembly, proposed to be held on March 28th, 2024. The issuance of an invitation to DEWA’s upcoming general assembly is subject to approval by the Securities and Commodities Authority of the UAE.

Selected Awards for 2023

DEWA won Guinness World Records in 2023 for the 4th phase of the Mohammed bin Rashid Al Maktoum Solar Park, featuring the tallest solar tower in the world, at 263.126 metres, and the largest thermal energy storage capacity of 5,907-megawatt hours (MWh).

DEWA won the Great Place to Work Certificate® 2023, presented by the Great Place to Work® Institute, in collaboration with Fortune Magazine, being the first among government organizations in the UAE and the GCC. HE Saeed Mohammed Al Tayer, MD & CEO of DEWA, was awarded the UAE Best Leadership Award of the Year 2023, for his successful leadership of DEWA following the highest international standards of excellence.

DEWA has won the Hydrogen Project of the Year 2023 Award for its green hydrogen project at the Mohammed bin Rashid Al Maktoum Solar Park. This was part of the Hydrogen Future Awards 2023, organized during the ‘Connecting Green Hydrogen MENA’ (CGHM2023) conference in Dubai. HE Saeed Mohammed Al Tayer, MD&CEO of DEWA, was also awarded the World Energy Transition Leader 2023, which recognizes influential leaders who have made significant global contributions to the clean energy industry.

DEWA also won the ‘Research and Innovation Award’ for first place in government sector organizations in the field of balanced national energy. These Awards corroborate DEWA’s ongoing efforts in research, development, and innovation.

News Source: Dubai Media Office