Dubai utility DEWA posts 6% profit increase for 2012

State utility Dubai Electricity and Water Authority reported a 6 percent increase in annual profit for 2012 on Sunday, after sales revenues and cash generated from core operations rose.

The monopoly, fully-owned by the government, made a net profit of AED4.65bn (US$1.27bn) in 2012, up from AED4.37bn in the prior-year period, its financial statement showed.

Cash generated from operations rose to AED7.5bn, up from AED7.4bn in 2011, and sales revenue increased 7 percent over the previous year.

"The healthy cash generation from operations was adequate to fund all capital investment requirements and also to pre-pay some of the loans maturing in future," a directors' report, posted on the NASDAQ Dubai bourse, said.

"Consequently we reduced interest costs during the year and also brought down the level of debt."

Net debt at the end of 2012 stood at AED20.6bn, compared to AED22.9bn at the end of 2011. Of the debt figure, AED4.23bn is due to be repaid this year.

The Dubai government will receive AED500m from a dividend payment approved by DEWA's board of directors.

DEWA has picked banks to arrange an Islamic bond, or sukuk, of at least US$500m, sources said last month. The company's CEO has said DEWA plans to raise up to US$1bn in sukuk in the first quarter to refinance existing debt and invest in projects.