Bord na Mona returns to profit

New figures from Bord na Mona show the State-backed utility returned to profitability last year, with all divisions within the group also generating revenue growth.

The group, whose focus is increasingly on the renewable energy sector, yesterday reported an after-tax profit of just over €9.2m for the 12 months to the end of March. This represented a turnaround from a loss of €16.3m the previous year.

Operating profit amounted to €23.5m, compared with a loss of €3.7m in the preceding year; and pre-tax profits topped €12.5m, after a €12.7m loss in the prior year. Group turnover grew by 11% to €426.1m; mainly boosted by fuel sales over the long period of winter weather.

However, Bord na Mona also took a €23.5m hit in exceptional costs directly due to last year’s historically low peat harvest — although a reduction in labour costs helped mitigate the damage — and the current harvest has shown vast improvement.

Bord na Mona’s management also yesterday offered a tentative welcome to the Government’s plan to merge the company with State forestry body Coillte next year.

Agriculture Minister Simon Coveney announced the intention to merge the two bodies last month after abandoning original plans to sell the country’s forest harvesting rights.

NewERA — the NTMA-affiliated body in charge of state asset restructuring — will over the coming months study the merger options, ahead of making a final decision by the end of the year.

Speaking yesterday, Gabriel D’Arcy, Bord na Mona’s managing director, said there existed many overlaps between the two businesses and there is “a lot of merit” in the merger plan. Chairman John Horgan added that the company would be “more than happy” to co-operate with NewERA in its preliminary studies.