Emirates Press

Group: Record half-year profit of AED 4.2 billion (US$ 1.2 billion) reflects strong turnaround and recovery after last year’s loss of AED 5.7 billion (US$ 1.6 billion). Revenue up 128% to AED 56.3 billion (US$ 15.3 billion).

dnata: Revenue doubled to AED 7.3 billion (US$ 2.0 billion), profit of AED 236 million (US$ 64 million) compared to AED 85 million (US$ 23 million) for the same period last year. Cost inflation across the business dampens performance even as operations ramp up.

Emirates: Revenue up 131% to AED 50.1 billion (US$ 13.7 billion), and profit of AED 4.0 billion (US$ 1.1 billion) compared to AED 5.8 billion (US$ 1.6 billion) loss for the same period last year. Performance shows airline’s ability to meet strong passenger demand across regions with capacity ramp up and high quality products.

DUBAI, U.A.E., 10 November 2022: The Emirates Group today announced its half-year results for its 2022-23 financial year.

The Group is reporting a 2022-23 half-year net profit of AED 4.2 billion (US$ 1.2 billion), a record half-year performance, and a turnaround of almost AED 10 billion from its AED 5.7 billion (US$ 1.6 billion) loss for the same period last year.

The Group also reported an EBITDA of AED 15.3 billion (US$ 4.2 billion), a marked improvement from AED 5.6 billion (US$ 1.5 billion) during the same period last year, illustrating its strong operating profitability.

Group revenue was AED 56.3 billion (US$ 15.3 billion) for the first six months of 2022-23, up 128% from AED 24.7 billion (US$ 6.7 billion) last year. This was driven by the strong demand for air transport across the world with the further easing and removal of pandemic-related travel restrictions.

The Group closed the 1st half year of 2022-23 with a strong cash position of AED 32.6 billion (US$ 8.9 billion) on 30 September 2022, compared to AED 25.8 billion (US$ 7.0 billion), as on 31 March 2022. The Group has been able to tap on its own strong cash reserves to support business needs, including debt payments and pandemic-related commitments.

His Highness (HH) Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group said: “The Group’s record performance for the first six months of 2022-23 is the result of forward planning, agile business response, and the efforts of our talented and committed workforce.

“Across the Group, our operations recovery accelerated as more countries eased and removed travel restrictions. We were ready and amongst the first movers to serve the strong customer demand thanks to our robust business plans, the support of our industry partners, and our ongoing investments in people, technology, and products and services.

“For the coming months, we remain focussed on restoring our operations to pre-pandemic levels and recruiting the right skills for our current and future requirements. We expect customer demand across our business divisions to remain strong in H2 2022-23. However, the horizon is not without headwinds, and we are keeping a close watch on inflationary costs and other macro-challenges such as the strong US dollar and the fiscal policies of major markets.”

Sheikh Ahmed added: “The Group expects to return to our track record of profitability at the close of our full financial year.”

In line with increased capacity and business activities, the Emirates Group’s employee base, compared to 31 March 2022, grew 10% to an overall count of 93,893 at 30 September 2022. Both Emirates and dnata have also embarked on targeted recruitment drives to support their future requirements.

dnata

In line with increased air and passenger traffic across markets, dnata’s businesses in cargo and ground handling, catering and retail, and travel services saw a significant uptick in operations. This drove strong revenue growth in the first six months of 2022-23, however dnata’s overall performance was dampened by inflation and increased costs across its markets.

In the first half of 2022-23, dnata grew its footprint with new long-term concession contracts to provide services in Zanzibar (dnata airport operations), and Ras Al Khaimah (Alpha Catering). Its Airport Operations division entered the German market with the acquisition of Wisskirchen Handling Services, the exclusive operator at Cologne Bonn Cargo Centre; and acquired the remaining 30% stake to assume full ownership of its ground handling business in Brazil.

Ensuring its future readiness to provide safe and high-quality services to its customers, dnata committed US$ 100 million to implement green technology and initiatives across its business, and invested US$ 17 million into its operations in Erbil, Iraq including an advanced cool chain facility, bus maintenance facility, and a new cargo warehouse.

dnata’s revenue, including other operating income, of AED 7.3 billion (US$ 2.0 billion) doubled compared to AED 3.7 billion (US$ 1 billion) generated in the same period last year.

Overall profit for dnata is AED 236 million (US$ 64 million), compared to last year’s AED 85 million (US$ 23 million).

dnata’s airport operations remains the largest contributor to revenue with AED 3.5 billion (US$ 944 million), a 37% increase as compared to the same period last year, as customer demand continued to pick up particularly in its UAE, US, Italy and UK businesses. Across its operations, the number of aircraft turns handled by dnata increased by 56% to 347,581, and it handled 1.4 million tonnes of cargo, slightly down by 2% reflecting its airline customers’ increased focus on passenger operations.

dnata’s flight catering and retail operations, contributed AED 2.4 billion (US$ 651 million) to its revenue, up 212% with strong production increases in Australia, the UK and US to meet customer demand. The number of meals uplifted increased sharply by 204% to 50.5 million meals after last year’s 16.6 million.

dnata’s travel division contributed AED 1.2 billion (US$ 323 million) to revenue, up 708% compared to AED 147 million (US$ 40 million) for the same period last year, driven largely by the strong recovery of travel demand and bookings in its Middle East and UK businesses. The division reported an underlying total transactional value (TTV) sales of AED 4.7 billion (US$ 1.3 billion), compared to AED 726 million (US$ 198 million) for the same period last year.

Emirates airline

Emirates continued to focus on restoring its global passenger network and connections through its Dubai hub, restarting services and adding flights to meet customer demand across markets.

In June, it launched services to Tel Aviv, a new destination. Expanding connectivity options for customers, Emirates launched codeshare and interline agreements with 12 airlines in the first six months of 2022-23: Airlink, AEGEAN, ITA Airways, Air Baltic, Air Canada, Bamboo Airways, Batik Air, Finnair, Royal Air Maroc, Sky Express, Sun Country Airlines, and United Airlines.

By 30 September, the airline was operating passenger and cargo services to 140 airports, utilising its entire Boeing 777 fleet and 73 A380s.

During the first six months of 2022-23, Emirates took delivery of 2 new Boeing 777 freighters and returned 1 older freighter from its fleet as part of its long-standing strategy to minimise its emissions footprint and operate modern, efficient aircraft. With new passenger aircraft only expected to arrive in 2024, Emirates this month began its multi-billion dollar programme to retrofit 120 aircraft with its latest cabin interiors and products.

Emirates continued to introduce new product and customer initiatives to deliver on its ‘fly better’ promise, including enhanced menus across all cabin classes, and the launch of a new hospitality programme to uplift service training and delivery. In August, Emirates launched its full Premium Economy experience to hugely positive, “booked-out” customer response on its flights to London, Paris and Sydney. Emirates plans to introduce its Premium Economy product on 5 more routes before the end of 2022-23, as more aircraft fitted with these popular seats roll out of its retrofit programme.

Overall capacity during the first six months of the year increased by 40% to 22.8 billion Available Tonne Kilometres (ATKM) due to an expanded flight programme as more countries eased travel restrictions. Capacity measured in Available Seat Kilometres (ASKM), increased by 123%, whilst passenger traffic carried measured in Revenue Passenger Kilometres (RPKM) was up by 265% with an average Passenger Seat Factor of 78.5%, compared with 47.9% during the same period last year.

Emirates carried 20.0 million passengers between 1 April and 30 September 2022, up 228% from the same period last year. Emirates Skycargo uplifted 936,000 tonnes in the first six months of the year, a 14% decrease compared to the same period last year, as the airline shifted capacity from its “mini-freighters” back to passenger operations.

Emirates profit for the first half of 2022-23 hit a new record of AED 4.0 billion (US$ 1.1 billion), compared to last year’s loss of AED 5.8 billion (US$ 1.6 billion). Despite an unfavourable currency exchange environment, Emirates revenue, including other operating income, of AED 50.1 billion (US$ 13.7 billion) was up 131% compared with the AED 21.7 billion (US$ 5.9 billion) recorded during the same period last year. The airline’s strong turnaround performance is driven by strong passenger demand for international travel across markets and shows the airline’s ability to plan ahead to meet the demand, activate capacity, and attract customers with its high-quality products and value proposition.

Emirates’ operating costs increased by 73% against an overall capacity growth of 40% mainly due to the substantial increase in fuel costs which more than tripled compared to the same period last year. This was primarily due to a 65% higher fuel uplift in line with increased flight operations, and the doubling of average oil prices during this period. Fuel, which was the largest component of the airline’s operating cost in pre-pandemic reporting cycles, accounted for 38% of operating costs, one of the highest ratios ever, compared to 20% in the first six months of last year.

Driven by strong demand and increased operations during the six months, Emirates’ EBITDA grew nearly three times to AED 14.7 billion (US$ 4.0 billion) compared to AED 5.0 billion (US$ 1.4 billion) for the same period last year.

Source: Dubai National Air Travel Agency

DUBAI, Dubai’s ENOC Group and Japanese heavy-industry manufacturer IHI Corporation signed a Memorandum of Understanding to explore establishing a low-carbon hydrogen and low-carbon ammonia supply chain in the UAE.

The move is aligned with the UAE’s overall efforts to diversify its energy sources to transition into a clean energy model for the world to emulate.

The produced fuel will be exported to Japan and supplied within the UAE and across the region for bunkering and other purposes.

As part of the agreement, both parties will execute corresponding studies in consecutive phases for green ammonia production in the UAE, including pre-feasibility and feasibility studies for the first-of-its-kind full-scale production plant, pre-FEED (Front End Engineering Design) and FEED studies for the demonstration plant, and pre-FEED and FEED for the full-scale production plant.

The agreement was signed by Saif Humaid Al Falasi, Group CEO, ENOC, and Jun Kobayashi, Executive Officer, General Manager of Solution & Business Development Headquarters of IHI Corporation.

Al Falasi said, “At ENOC, we continue to explore partnerships that safeguard the future for generations to come. Our collaboration with IHI Corporation demonstrates our commitment to supporting the UAE’s energy transition efforts whilst advancing Dubai’s Clean Energy Strategy 2050. We are excited to work with IHI Corporation to explore the potential of green ammonia production in the UAE.”

This partnership aligns with Dubai’s Clean Energy Strategy 2050 and the UAE Energy Strategy 2050 to meet the country’s economic requirements and environmental goals. Further, it supports the UAE Net Zero by 2050 Strategic Initiative, a national drive to achieve net-zero emissions by 2050.

Jun Kobayashi of IHI Corporation, said, “IHI is delighted to announce our collaboration with ENOC on establishing the green ammonia value chain in the UAE. IHI believes green ammonia is one of the most practical, economical carbon-free fuel solutions with high volumetric hydrogen density and easy handling.

The UAE is well positioned to produce and export green ammonia with its abundant renewable energy and robust maritime trade infrastructure, which cements its place as a critical hub for global shipping. This collaboration will help materialise Japan’s and UAE’s carbon reduction goals.”

Green ammonia, which can be achieved by combining and reacting green hydrogen and nitrogen at high temperatures and pressures, can potentially reduce global carbon emissions and be used within the transportation, power generation and industrial sectors.

Source: Emirates News Agency

DEWA reports a record (year to date) net profit of AED 6.47bn, which is nearly at par with its full year net profit of 2021

For the year 2022, DEWA will pay its shareholders AED 8.23bn in dividends (AED 6.2bn as part of dividend policy and AED 2.03 bn as a one-time special dividend)

DEWA has paid AED 3.1bn of dividends to shareholders for H1, 2022 on October 26th, 2022. DEWA intends to pay a one-time special dividend of AED 2.03bn in December 2022. Also, DEWA will pay AED 3.1bn of dividends to shareholders for H2, 2022 in April 2023

DEWA’s majority owned subsidiary, EMPOWER, is expected to be listed on the DFM in mid November, 2022

DEWA is on track to deliver the best full year financial performance in its history

AED 8.55 bn

AED 3.17 bn

AED 20.63 bn

AED 6.47 bn

+15 % YoY

+10 % YoY

+15 % YoY

+21 % YoY

Q3, 2022 Revenue

Q3, 2022 Net Profit

YTD, 2022 Revenue

YTD, 2022 Net Profit

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 third quarter 2022 financial results, recording quarterly revenue of AED 8.55 bn and net profit of AED 3.17 bn. Year to date, DEWA’s revenue is AED 20.63 bn and net profit is AED 6.47 bn.

Demand driven robust financial performance

DEWA’s first 9 month revenue increase of 15% to AED 20.63 bn was mainly driven by an increase in demand and a transition to normalized tariff structure. Energy demand in Dubai during the first 9 months of 2022 increased by 5% compared to the same period in 2021. Similarly, water demand in the same period grew by 6.4%.

Demand for energy in the first 9 months of 2022 reached 40.7 TWh compared to 38.6 TWh in the first 9 months of 2021. Further, DEWA’s peak demand in the first 9 months of 2022 was 9.5 GW, which represents a 3.3% increase over the same period of last year. For the year 2022 and 2021, DEWA achieved peak demand in the month of July.

By the end of the third quarter, DEWA served 1,143,153 customers, representing a 4.89% increase from the same time last year. Accordingly, DEWA has added 17,032 new customers since Q2, 2022.

For the third quarter of 2022, DEWA generated 17.3 TWh, representing a 3.59% increase from the same period last year. Similarly, DEWA produced 36.7 Billion Imperial Gallons of desalinated water, representing a 6.59% increase.

Quote

“In line with the vision of the wise leadership to strengthen Dubai’s position as a leading global financial and economical hub we achieved a profit for the first 9 months of 2022 which is nearly at par with our full year net profit of 2021. These record results are a testament to our steadfast focus on delivering our strategic priorities of sustainable and innovative growth. We are well positioned to deliver the best full year financial performance in our history. Moreover, we have made sustained progress towards unlocking shareholder value by paying our first dividend of AED 3.1bn in Oct, 2022, by announcing the intention to float our 70% owned subsidiary EMPOWER and by recommending the payment of a one-time special dividend of AED 2.03bn to be paid to our shareholders in December. For the financial year 2022, we expect to return AED 8.23bn in dividends to our shareholders,” said HE Saeed Mohammed Al Tayer, MD & CEO of DEWA

“DEWA offers an excellent value proposition that is backed by record earnings growth, predictable cash flows and a defined dividend policy, collectively reaffirming our ongoing commitment to continue to unlock value for our shareholders.” added Al Tayer.

Select quarterly highlights: Network growth and Innovation

In Q3, 2022, DEWA signed a partnership agreement with Dutch startup Desolenator BV, to build a sustainable, carbon-neutral water purification and desalination system based on solar thermal energy, targeting a levelized cost of potable water production at a rate that is less than US$0.02 per litre. A pilot water desalination plant has been installed at the Jebel Ali Power Plant and Desalination Complex, with a production capacity of minimum 1,000 litres of potable water per day.

In addition, the Museum of the Future in Dubai has signed a strategic partnership agreement with DEWA to showcase unique technologies and solutions related to the future of environmental sustainability and renewable energy.

In September 2022, Etihad Energy Services Company (Etihad ESCO), a wholly-owned subsidiary of DEWA, signed several contracts and Memoranda of Understanding (MoUs) with several Dubai government entities. Etihad ESCO signed MoUs with the Real Estate Regulatory Agency (RERA) for energy efficiency and energy metering services; contracts with Dubai Municipality, Dubai Multi Commodities Centre (DMCC) and Dubai Civil Defense for solar energy generation projects and energy efficiency of their facilities.

In Q3, 2022 DEWA broke its own world record in major inspection outage duration for the overhaul of gas turbines and desalination units. Specifically, DEWA has reduced the maintenance outages for key inspection operations from 11 days to 9 days, which is a reduction in the maintenance duration of 18%, compared to the previous world record achieved by DEWA in 2019.

In Q3, 2022 achieved the Guinness World Records title for owning and managing the Largest Single-Site Water Desalination Facility in the World with production capacity of 490 million imperial gallons of water per day. This is the second world record for Jebel Ali Power Generation & Water Production Complex. In 2021, the Complex was confirmed by Guinness World Records as the Largest Single-site Natural Gas Power Generation Facility in the World.

DEWA’s focus on smart innovation continues. DEWA’s R&D Centre is testing its Smart Grid Analytics project, which uses voltage and current measurements from primary substations to detect and forecast disturbances on the Medium Voltage (MV) network. This helps DEWA conduct necessary preventative maintenance.

The R&D centre registered its 6th patent for a user-friendly robotic carrier to transport solar photovoltaic panels. DEWA has also created new software for the ‘Smart Design of Electricity Distribution Networks’ and obtained Intellectual Property (IP) protection from the UAE Ministry of Economy. In addition, DEWA registered a patent for its cable lifecycle ageing project, which helps enhance the life span of its distribution cables.

Since its launch, DEWA’s R&D centre has published 103 research papers in international scientific conferences and international peer-reviewed journals.

In addition, DEWA commissioned 389 11kV substations in Dubai in the third quarter of 2022. There are now 77 33kV substations in service, and 42,529 medium voltage (11kV or 6.6kV) substations in DEWA’s network. DEWA also commissioned 2 132kV stations in Q3, 2022, bringing the total number of 132kV stations to 331.

Lastly, DEWA has been ranked the third most valuable utility brand in the middle east and the third fastest growing brand in the UAE according to the annual report issued by ‘Brand Finance’ for the strongest and most valuable brands in the world in 2022.

Sustainability Focus: WETEX & Dubai Solar Show and WGES

From 27 to 29 September 2022, DEWA organised the 24th Water, Energy, Technology, and Environment Exhibition (WETEX) and Dubai Solar Show (DSS). This is the largest exhibition of its kind in the region. WETEX & DSS attracts exhibitors, sponsors and investors from around the world to learn about latest technologies, innovative solutions and investment opportunities for clean and renewable energy, water, green economy, smart cities and sustainability. This supports the national strategies in the GCC countries, which focus on diversifying the economy and reducing dependence on oil and gas, reducing energy and water consumption and emissions, to achieve carbon neutrality and 17 UN Sustainable Development Goals (SDGs) by 2030. For 2022, the exhibition was held under the theme ‘At the Forefront of Sustainability’, with the participation of 1,750 companies from 55 countries.

On 28th and 29th September 2022, DEWA organised the 8th World Green Energy Summit (WGES) in collaboration with the World Green Economy Organization (WGEO), and the Dubai Supreme Council of Energy. This year, the theme was ‘Climate Action Leadership through Collaboration: The Roadmap to Net-Zero’. The 8th WGES focused on discusses several themes such as energy, finance, food security, youth, and other topics that accelerate the transition towards a green economy and drive sustainable development. It featured a Ministerial Roundtable on green economy with about 25 ministers and officials from around the world. It also hosted the Regional Conference of Youth (RCOY) MENA 2022.

Unlocking shareholder value: EMPOWER IPO

On 24th October 2022, EMPOWER announced its intention to float. The company is expected to list in November 2022. Further details about the intended initial public offering can be viewed at https://www.empower.ae/ipo/.

In advance of the intention to float, EMPOWER has optimized its capital structure and has paid a dividend of AED 2.03 billion to DEWA.

Prior to the Initial Public Offering, DEWA held a 70% shareholding in EMPOWER. Upon completion of the proposed IPO, DEWA expects to continue to consolidate EMPOWER.

Unlocking shareholder value: For the year 2022, DEWA will pay its shareholders AED 8.23bn in dividends

A. Payment of one-time special dividend of AED 2.03bn

As a result of the cash dividend received by DEWA from EMPOWER, DEWA intends to seek all necessary approvals to make a one-time special dividend payment to its shareholders. Accordingly, DEWA’s board has recommended the payment of a one-time special dividend of AED 2.03bn (4.06 fils per share), which is subject to the approval of its shareholders at an upcoming general assembly, which is intended to be held in December 2022.

B. Payment of annual dividends of AED 6.20bn

As part of its dividend policy to pay a minimum dividend of AED 6.2 billion per year over the next five years, DEWA made its first dividend payment of 6.2 fils per share (AED 3.1 billion) for H1, 2022 on October 26th, 2022. For H2, 2022, DEWA expects to pay 6.2 fils per share (AED 3.1 billion) in April 2023 (subject to all approvals).

Key Financial Metrics

AED Millions

Q3-2022

Q3-2021

Change

YTD-2022

YTD-2021

Change

Revenue

8,552

7,418

15%

20,629

17,951

15%

Net Profit

3,172

2,872

10%

6,474

5,355

21%

EPS (AED / Share)

0.062

0.055

13%

0.125

0.100

25%

About Dubai Electricity and Water Authority PJSC

DEWA was created in 1992 as a result of the merger of the Dubai Electricity Company and the Dubai Water Department. DEWA is the exclusive electricity and water utility provider in Dubai. The Group generates, transmits and distributes electricity and potable water to end users throughout Dubai. DEWA owns 70% of Empower, currently the world’s largest district cooling services provider by connected capacity, and owns, manages, operates and maintains district cooling plants and affiliated distribution networks across Dubai. The Group also comprises a number of other businesses including Mai Dubai, a manufacturer and distributor of bottled water, Digital DEWA, a digital business solutions company, and Etihad ESCO, a company focused on the development and implementation of energy efficient solutions.

To find out more, visit https://www.dewa.gov.ae/

Cautionary statements relevant to forward-looking information

This news release contains forward-looking statements relating to DEWA’s operations that are based on management’s current expectations, estimates and projections about the energy industry and other relevant industries that DEWA operates in. Words or phrases such as “anticipates,” “expects,” “intends,” “plans,” “targets,” “forecasts,” “projects,” “believes,” “seeks,” “schedules,” “estimates,” “positions,” “pursues,” “may,” “could,” “should,” “will,” “budgets,” “outlook,” “trends,” ”guidance,” “focus,” “on schedule,” “on track,” “is slated,” “goals,” “objectives,” “strategies,” “opportunities,” and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, many of which are beyond the company’s control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Unless legally required, DEWA undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Source: Dubai Electricity & Water Authority

DUBAI, Salik Company announced that it achieved a net profit of AED242 million in the third quarter of 2022, with revenues increasing 9.1 percent year-on-year (YoY) to AED445 million, driven by solid operational performance reflecting positive economic activity and growth in traffic, while EBITDA reached AED 291 million, yielding a strong margin of 65.4 percent.

During its meeting presided by Mattar Al Tayer, Chairman of the Board of Directors of Salik Company, the board approved Salik’s condensed interim financial results for the three-month and nine-month periods ending 30th September, 2022, the first set of financial results for Dubai’s exclusive toll gate operator, as a stand-alone entity following its admission to the Dubai Financial Market.

Al Tayer expressed his pleasure at the robust set of results achieved by Salik over the last quarter. “The results were reflective of the Company’s strength as Dubai’s exclusive road toll operator. Salik’s strong business model positions it at the heart of the roads and transport sector’s expansion plans in Dubai.”

“The outlook is positive as we stand in a pole position to benefit from Dubai’s ambitious expansion plans and Salik’s growth initiatives. We have full confidence in Salik’s ability to deliver great value over the long term to all our shareholders,” he added.

Ibrahim Sultan Al Haddad, Chief Executive Officer of Salik, commented, “Salik closed Q3 2022 with a strong financial performance that showcases our robust business model as the exclusive operator of the Emirate of Dubai’s eight toll gates. This is demonstrated by our robust revenue and net profit, which reached AED445 million and AED242 million respectively, reflecting our strong operational performance during the quarter.”

“During Q3 2022, we successfully completed our initial public offering on 29th September, and began an exciting journey with our new shareholders as a DFM-listed company. The overwhelming IPO demand with 49 times over-subscription is testament to the fundamentals underpinning Dubai’s capital markets, as well as Salik’s strong investment case,” he explained.

Source: Emirates News Agency