ESB H1 revenue rises to €1.7bn

The ESB has reported a 4% year-on-year increase in first-half revenues to just over €1.7bn, adding that it remains on course to meet its stated targets of €280m in recurring annual savings by 2015.

Interim figures — published yesterday — show that the group made an after-tax profit of €188m for the first six months of the year; down by €45m on the corresponding period last year. (Electric Ireland figures are only broken out on a full-year basis.)

That decline was chiefly down to a combination of tax changes and higher interest rates; but operating profit for the period was up €50m to €359m, thanks to cost savings and increased revenue.

ESB chief executive Pat O’Doherty said: “The underlying business performed well during the first half of 2013 as reflected in the operating profit,” adding that management remains on track to secure its targeted annual savings under its Performance Improvement Programme.

The ESB also said yesterday it is to sell its Lough Ree and West Offaly peat power stations to meet its Government-requested objective of delivering special dividends of up to €400m by the end of 2014. The group said sales of its interests in the Marchwood power plant in Britain and its Spanish-based Bizkaia Energy offshoot will not deliver the €400m alone.

A preferred bidder for Marchwood — known to be a major European insurance company — has been selected and approved and that disposal is expected to be completed within the next two months.

The ESB will be proposing to prospective buyers of the two Irish peat plants an arrangement under which it continues to operate and maintain the stations with existing staff.

Yesterday’s half-year statement also showed that the ESB continued to invest heavily in the upgrade and development of its island of Ireland infrastructure; spending €164m since the start of the year in ESB Networks and €42m in Northern Ireland Electricity.