ESB operating profits climb to €635m in 2015

Operating profits at the ESB increased by 13% to €635m in 2015 as a result of its power plants being operational for a greater period of time.

The €83m increase in profits does not include impairment costs of €104m associated with plants in Britain and Northern Ireland.

Commenting on the results, ESB chief executive Pat O’Doherty said the company’s solid financial performance last year was needed in order to deliver on its longer term commitments.

“2015 has been a solid performance year for ESB and we need that to deliver on our long-term ambition.

"We invest for the long-term; we invest in critical infrastructure for the country, for the economy and for society and we need that short-term performance to allow us to deliver on that long-term ambition.

"In the face of intensifying competition, these results reflect a solid performance across the ESB Group,” said Mr O’Doherty.

Recurring annual cost savings of €270m — achieved since 2010 — has been key to maintaining the group’s profitability.

The savings were achieved following the implementation of a 2010 performance improvement programme.

The group’s profit after interest and tax also increased in 2015; by €71m to €286m.

ESB also took its total dividend paid to the State over the past decade to almost €1.5bn after a €214m payment last year.

The dividend payment in January of last year completed the special dividend programme of €400m agreed with the Government in 2012.

The company which employs 7,300 staff across its various business segments reduced its capital expenditure last year to €873m.

This represents an €87m decrease on 2014 levels. Its greatest area of investment was in ESB Networks where it invested close to €500m.

Revenues for the year totalled €5.042bn — the biggest proportion of which came from Electric Ireland, its electricity supply segment.

Electric Ireland cut gas prices by 5% for residential customers during the year, following reductions in electricity prices of 4% the previous November.

ESB said it will continue to monitor energy markets and pass on price savings to customers as they arise.

According to the company, customers with both electricity and gas services with ESB have seen savings of €90 per annum.

“I believe there are three things that we must do in the coming years.

"We must continue to innovate; to build the new businesses which will become the heart of the ESB of the future while at the same time we must deliver short-term financial performance from our existing businesses to allow us invest in that future and all of that must be underpinned by being cost competitive,” said Mr O’Doherty.

Customer disconnections also fell in 2015 with 30 disconnections per 10,000 customers connected.