DEWA posts $1.13b net profit in 2009

20 May 2010

(MENAFN) Dubai Electricity and Water Authority (DEWA) said that its net profit for 2009 reached of $1.13 billion, marking a marginal decline of 1.7 percent compared to a year earlier, Emirates Business 24/7 reported.

DEWA’s total revenue for the year stood at $2.8 billion compared to $2.52 billion posted in 2008. The authority’s operating profit for 2009 was at $1.4 billion compared with $1.28 billion a year earlier. Significantly, the finance costs for the year at $282 million were more than double the amount incurred for the previous year at $125.3 million.

Total assets saw a sizeable growth of 18.66 percent during the year when they increased from $18.9 billion as at 2008 end to $22.4 billion. At December 31, 2009, DEWA had net current liabilities of $1.11 billion, up from $1.8 billion in 2008, mainly on account of short-term borrowings amounting to $1.16 billion, as per the notes appeared as part of the financial statements.

It is worth mentioning that DEWA has entered into a framework agreement with a consortium of banks and export credit agencies for a facility aggregating to $1.17 billion, which is only partly drawn down to the extent of $787 million as of December 31, 2009. The management said that it would secure additional long-term borrowing arrangements in order to reduce DEWA’s net current liability position.