Airtricity’s profits tumble 26% despite revenue rise

A decrease in customer numbers last year contributed to pre-tax profits at energy firm, SSE Airtricity, falling 26% to €34m.

Accounts just filed by SSE Airtricity Ltd with the Companies Office show that the firm recorded the reduction in profits in spite of revenues increasing by 5% from €883m to €924.4m in the year to the end of March 31st last.

The hefty pre-tax profits of €93m enjoyed by SSE Airtricity over 2014, 2013, and 2012, allowed it last year pay a dividend of €70m to its Scottish based publicly quoted parent, SSE.

SSE Electricity increased its electricity prices on its 380,000 customers by 3.5% in November 2013 after further increases in October 2012.

SSE Airtricity blamed the price increase on the firm not being able to absorb the rising costs that it is facing.

According to the directors’ report, “the results in the financial year to March 31 reflect various factors including higher energy costs and a decrease in customer numbers”.

Latest figures from energy regulatorshow that Airtricity is the second largest player in the domestic and large energy user markets here. The firm has 353,316 domestic customers and 381 large energy users.

SSE Airtricity has 17.5% of the domestic market with Electric Ireland having a 62% share. SSE Airtricity’s share of the large energy user market totals 22.3%.

However, in its largest quarterly report for the second quarter of 2014, the regulator states that SSE Airtricity’s share of customers “has declined across all segments”. The firm’s loss of market share was marginal — in the domestic sector it declined by 0.67% and a drop of 0.17% was recorded in the large energy unit market.

Numbers employed by the firm last year increased from 334 to 405 with staff costs increasing by 11.5% from €13.7m to €15.2m.