- Dubai’s DEWA reported a 1Q profit of 647.4 million Dirhams, representing a decrease of 13% year-on-year.
- It generated revenue of 5.8 billion Dirhams, an increase of 6.7% year-on-year, whereas the estimate was 5.98 billion Dirhams.
- The operating profit came in at 994.9 million Dirhams, up by 12% year-on-year. This was below the estimated 1.15 billion Dirhams.
- Finance cost was reported to be 530.9 million Dirhams, a rise of 34% from the previous year.
- Earnings per share (EPS) stood at 0.0130 Dirhams, down from 0.0150 Dirhams in the same period last year, but above the estimated 0.01 Dirhams.
- The company attained the highest first quarter EBITDA of 2.6 billion Dirhams in its history.
- An impressive 7.24% increase in the quarterly peak demand compared to 1Q 2023, reaching 6.1 GW in 1Q 2024, was due to high demand growth of electricity and water, contributing to exceptional operating results.
- Customer accounts increased by 4.7% from the previous year, with 1,224,560 accounts in 1Q 2024 compared to 1,169,713 customer accounts in 1Q 2023.
- DEWA aims to achieve installed power capacity of approximately 20 GW and 735 MIGD of desalinated water by the end of 2030.
- Out of the targeted 20 GW, around 5.3 GW will originates from renewable sources, which equates to 27% of the total.
- Comprised of 9 buys, 3 holds, 0 sells, DEWA’s current rating shows a largely positive market outlook.
A look at Dubai Electricity & Water Auth Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Dubai Electricity & Water Authority (DEWA) shows a promising long-term outlook. With a strong Value score of 4, the company is perceived as undervalued and potentially a good investment opportunity. While the Dividend, Growth, Resilience, and Momentum scores are not as high, they are all consistent at 3, indicating stability and moderate performance across these key factors.
DEWA, a utility company that provides essential services in power generation and water desalination in the United Arab Emirates, seems to be well-positioned for steady growth and reliability. Investors may find DEWA to be a solid choice for a balanced portfolio, considering its positive Value score and the critical role it plays in serving both residential and commercial customers in the region.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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