Dubai utility DEWA Q3 net profit up 10 percent to $863 mln

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Dubai Electricity and Water Authority reported a 10 percent increase in third-quarter net profit to 3.17 billion dirhams ($863 million) on Thursday, boosted by higher energy and water demand in the emirate.

Its shares were 1.2 percent higher at 0800 GMT.

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The utility company’s $6.1 billion listing on Dubai’s stock exchange earlier this year was the emirate’s biggest ever, and part of a broader strategy to float state-linked companies to boost investment and liquidity, as well as diversify its economy.

DEWA’s net profit for the first nine months of the year was up 21 percent on the same period of last year, according to a company statement.

Total revenues for the third quarter hit 8.55 billion dirhams, up 15 percent year on year, while year to date revenue was also up 15 percent.

The company said rising energy and water demand in Dubai during the year - up 5 percent and 6.4 percent respectively - were key factors behind its financial performance.

DEWA intends to pay a dividend to shareholders of 8.23 billion dirhams for the year, which includes a one time special dividend of 2.03 billion to be paid in December once approved. The company has committed to a dividend payment of 6.2 billion dirhams per year over the next five years.

DEWA owns 70 percent of cooling company Empower, which is due to list on the stock exchange this month after it raised 2.66 billion dirhams from its initial public offering.

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