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Earnings continue to trickle in as 2Q filings wrap up, with reports from a couple of our regional heavyweights.
DEWA-
Dewa’s bottom line fell 3.5% in 2Q: Dubai Electricity and Water Authority (Dewa) posted a 3.5% y-o-y decline in net income to AED 1.9 bn in 2Q 2024, according to the authority’s financial statement (pdf). The company’s revenues increased 7.8% to AED 7.9 bn.
The company’s 1H saw a similar result: The company’s net income dropped 6.7% y-o-y to AED 2.6 bn in 1H 2024, while revenues jumped 7.3% to 13.7 bn over the same period.
What they said: “The demand for power and water in 2024 grew by 6.7% and 4.3% respectively reflecting continuous growth in Dubai,” Dewa CEO Saeed Mohammed Al Tayer said in a separate statement (pdf), adding that the firm aims to have 5.3 GW of renewable power installed, and produce 735 mn gallons per day of water by 2030.
Dewa’s been active: Dewa and Saudi Arabia’s Acwa Power reached financial close on the AED 3.4 bn solar-powered Hassyan water desalination project in Dubai in April. Dewa also signed a 30-year water purchase agreement with Acwa to buy water from phase one of the plant.
TABREED-
District Cooling company Tabreed saw its net income rise 3% y-o-y to AED 164.5 mn in net income in 2Q 2024, according to the firm’s financials (pdf). Tabreed’s revenues inched up 1.3% y-o-y, reaching AED 611.4 mn during the three-month period, with the company attributing growth to sustained profitability margins and an 8% increase in consumption volumes, according to its earnings release.
On a six-month basis, Tabreed saw its net income dip 29% y-o-y to AED 283.8 mn in 1H 2024. The company’s revenues remained relatively flat at AED 1.08 bn during the same period.
Tabreed is also considering issuing green sukuk and bonds to refinance some of its debt, Al Wahedi added, reiterating comments made by Tabreed CFO Adel Salem Al Wahedi back in May that the firm plans to refinance USD 1.2 bn of its debt next year.
PLUS- The firm appointed Bakheet Al Katheeri (LinkedIn) as its new chairman, replacing Khaled Al Qubaisi, who has served as Chairman since 2017. Al Katheeri is currently the CEO of Mubadala’s UAE Investments platform, and previously headed Mubadala Energy.
A busy 2Q: Tabreed signed a cooperation agreement with the UAE’s Energy and Infrastructure Ministry alongside Empower Energy Solutions and Emirates District Cooling (Emicool) to improve district cooling efficiency in May. The company also completed a tender offer to repurchase USD 500 mn outstanding trust certificates due in 2025 back in April.
Looking ahead: The district cooling firm is in talks to expand its operations in Egypt following the launch of its project at Marakez’s Downtown Katameya Mall, Al Wahedi told Asharq Business.
The EGP’s stability is what swayed Tabreed: The company has been hesitant to invest in Egypt because it conducts its activities in local rather than foreign currency, Al Wahedi explained. However, the firm has taken note of the stability of the EGP over recent weeks.
Remember: The firm terminated an EGP 1.6 bn contract with Egyptians for Healthcare Services at the start of the year for its unit CapitalMed’s medical complex in Badr City in Egypt. The company’s CEO Khalid Al Marzooqi said that the pre-float FX crisis had made the project “financially unsustainable.”
