Dubai: Dewa’s dividends will be consistent on strong cash flows

Dubai: Dewa’s dividends will be consistent on strong cash flows

The utility company expects to pay a minimum annual dividend of Dh6.2 billion over the next five years

Published: Wed 30 Mar 2022, 7:53 PM

Dubai Electricity and Water Authority (Dewa) has a solid balance sheet and ability to generate strong cash flows from its operations to ensure dividends for next five years, experts say.

Andrew Tarbuck, partner, head of Capital Markets at Al Tamimi & Company, said Dewa’s dividend plans for next five years are an attractive aspect to its IPO and there is every optimism that dividend flow will be consistent year on year but, as always, this will depend on the distributable profits at each year end.

Dewa expects to pay a minimum annual dividend of Dh6.2 billion ($1.69 billion) over the next five years, starting in October 2022. Earlier this month, the power utility said dividends would be shared with the shareholders twice a year in April and October.

“The group had a net income of Dh6.6 billion ($1.8 billion) in 2021 with a net income margin of 27.5 per cent, which is stellar for a utility company,” according to an analyst.

“Dewa is the sole provider of electricity, water and the leading provider of district cooling in Dubai, with strong top-line