Profit at Bord na Móna up by 114% to reach €50.3m

Bord na Móna is expecting the early contribution from pending wind farm projects to further boost its earnings this year, following a record profit performance in its latest financial year.

The State-backed renewable energy-focused utility’s 2013/14 annual report — published yesterday and covering the 12 months to the end of March — showed a 114% year-on-year jump in operating profits to €50.3m, a 50% annual rise in Ebitda to €91m and a jump from €9.22m to €33.5m in post-tax profits.

A marginal increase in revenue, to €426.8m was also seen.

While the company has become more focused on its renewable energy assets in recent years, its latest financial growth was generated by its more traditional waste management and peat production units.

The latter — for years Bord na Mona’s traditional core business — benefited from a strong harvest and lower processing costs, although performance was measured against a historically low peat harvest in the preceding year.

Additionally, the resource recovery division — comprising the AES residential waste management and recycling company — saw a massive jump in turnover, in the last year, from €8.9m to a record €80.3m, driven by increased customer numbers and expanded volume in its waste technology facility in Co Kildare.

While noting AES’ “dramatic turnaround“, Bord na Mona’s management said that the business is not yet where they want it to be, but is on track.

Chief financial officer Michael Barry said that while €23m of AES’ value was written off two years ago, “there is no question of any impairment at this point in time”.

The 2013/’14 period is Bord na Mona’s second consecutive year of profitability. Managing director Gabriel D’Arcy said that group revenue has risen by 50% during challenging times, with earnings trebling over that timeframe.

He added that earnings and revenue should continue to grow.

The current year should be boosted by a near half-year’s contribution from the Mount Lucas and Bruckna wind farms (in counties Offaly and Laois, respectively), which are nearing completion and should be generating revenue during the second half of the year.