ID :
55161
Mon, 04/13/2009 - 14:59
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https://oananews.org//node/55161
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Dewa posts Dh4.24b profit on lower costs
Dubai Electricity and Water Authority (Dewa), the emirate's sole utility provider that has billions of dirhams worth of investment commitments, made a profit of Dh4.24 billion last year compared with a loss of Dh744 million in 2007 according to a report by Bloomberg
Its revenue during the year increased by 52.5 per cent to Dh9.29 billion, while the cost of generation and distribution fell by about 32 per cent to Dh4.34 billion.
Dewa's finance cost last year rose 46 per cent to Dh489 million as the utility's borrowings increased, according to a statement posted on the Nasdaq Dubai website.
Last week, Dewa received US$2.2 billion from 18 banks in a syndication facility to refinance a Dh8 billion one-year ijara, or Islamic lease transaction, it had arranged in April 2008.
Saeed Mohammad Al Tayer, Managing Director and CEO of Dewa, said this month that electricity consumption in Dubai increased 13 per cent in January and by 17 per cent in February but a "realistic forecast" of demand will be available in May and June because of a slowdown in construction activity.
The utility's electricity revenue was Dh6.7 billion last year compared with Dh4.2 billion in 2007, while water revenue was Dh2.55 billion and Dh1.9 billion for the two comparable periods.
It reported a decline of 22.7 per cent in the cost of power generation and desalination expenditure.
Dewa has more than 480,000 customers and its power generation capacity is 5,448 megawatts (MW).
The utility has announced plans to invest more than Dh70 billion in power generation and water desalination projects in the next five years to satisfy rising utility consumption.
But projects will be reviewed this year to adjust to changes in demand. With local construction activity weakening due to an economic slowdown, utility consumption is also expected to grow at a slower pace this year.
The centrepiece of Dewa's investment plans is the Hassyan project in Jebel Ali at an estimated Dh22 billion cost. Among the options being looked at for new project funding are export credit guarantees from government agencies in countries whose companies are selling equipment for Dubai projects.
The project, to be developed in phases to a capacity of 9,000 megawatt of power and 720 million gallons of water per day, is delayed by one year after potential contractors sought more time and Dewa had enough reserve capacity.
In a recent interview Al Tayer told Gulf News that Dubai is well-placed from a supply perspective to meet its power and water requirements and the delay is not going to affect the ongoing real estate and industrial developments.
Dewa, is carrying a negative fair value of Dh1.3 billion on an interest-rate- swap contract it entered into in 2007, according to the notes to the financial statement.
Dewa will attempt to renegotiate the swap agreement, which has a notional value of Dh5.55 billion.
Its revenue during the year increased by 52.5 per cent to Dh9.29 billion, while the cost of generation and distribution fell by about 32 per cent to Dh4.34 billion.
Dewa's finance cost last year rose 46 per cent to Dh489 million as the utility's borrowings increased, according to a statement posted on the Nasdaq Dubai website.
Last week, Dewa received US$2.2 billion from 18 banks in a syndication facility to refinance a Dh8 billion one-year ijara, or Islamic lease transaction, it had arranged in April 2008.
Saeed Mohammad Al Tayer, Managing Director and CEO of Dewa, said this month that electricity consumption in Dubai increased 13 per cent in January and by 17 per cent in February but a "realistic forecast" of demand will be available in May and June because of a slowdown in construction activity.
The utility's electricity revenue was Dh6.7 billion last year compared with Dh4.2 billion in 2007, while water revenue was Dh2.55 billion and Dh1.9 billion for the two comparable periods.
It reported a decline of 22.7 per cent in the cost of power generation and desalination expenditure.
Dewa has more than 480,000 customers and its power generation capacity is 5,448 megawatts (MW).
The utility has announced plans to invest more than Dh70 billion in power generation and water desalination projects in the next five years to satisfy rising utility consumption.
But projects will be reviewed this year to adjust to changes in demand. With local construction activity weakening due to an economic slowdown, utility consumption is also expected to grow at a slower pace this year.
The centrepiece of Dewa's investment plans is the Hassyan project in Jebel Ali at an estimated Dh22 billion cost. Among the options being looked at for new project funding are export credit guarantees from government agencies in countries whose companies are selling equipment for Dubai projects.
The project, to be developed in phases to a capacity of 9,000 megawatt of power and 720 million gallons of water per day, is delayed by one year after potential contractors sought more time and Dewa had enough reserve capacity.
In a recent interview Al Tayer told Gulf News that Dubai is well-placed from a supply perspective to meet its power and water requirements and the delay is not going to affect the ongoing real estate and industrial developments.
Dewa, is carrying a negative fair value of Dh1.3 billion on an interest-rate- swap contract it entered into in 2007, according to the notes to the financial statement.
Dewa will attempt to renegotiate the swap agreement, which has a notional value of Dh5.55 billion.
