Energy group Veridian's profits 11%

Northern Ireland Electricity’s parent company, Veridian, today reported an 11% jump in profits and a major increase in business in the Irish Republic.

Energy supplies in the Republic increased by more than 25% and Viridian was the largest independent supplier of electricity here through its Energia subsidiary.

Announcing the annual results, Viridian chief executive Patrick Haren said: “The group has delivered a very good set of results. Our strategy is strongly focused on building our energy business here in Ireland.

“Our regulated businesses under Northern Ireland Electricity have each delivered a strong performance and we have seen significant increases in customer numbers and energy sales in the Republic where we are growing our customer base to absorb the future output of our second power station at Huntstown.”

Highlights of the results included:

:: Turnover increased to £976.8m (€1.4bn) from £835.4m (€1.2bn)in 2005;

:: Operating profit increased 11% to £132.4m (€194m) from £119.1m (€175m) in 2005;

:: Strong growth in business customers to 18,600 in the Republic;

:: Energy supplied in the Republic increased by 26%;

:: All-island competitive market electricity sales increased 36% to £370.1m (€543m);

:: During the year Energia started to supply a number of large customers in the Republic with gas, generating revenues of £11m (€16.1m).

Mr Haren said the company intended to be a significant player in the energy markets in Ireland and had taken a lead in promoting an all-island market in electricity.

Energia is the leading independent electricity supplier in the Republic with a 33% share in the large energy user market and growing business strongly in the small to medium-sized business market, he said.

Despite Energia experiencing pressure in operating margins, the company was still strongly committed to a second power station at Huntstown, near Dublin, said Mr Haren.

The plant is due for completion in the autumn of 2007 and would bring investment in competitive generation in the Republic to €500m, he said.

On the Northern Ireland Electricity front, he said focus remained on controlling costs while ensuring quality of service to customers.

During the last financial year £73.5m (€107.8m) had been invested in NIE networks and systems.

Targets on overall and guaranteed standards had been met and the company had continued to deliver a high level of network reliability, he reported, against a background of network operating costs reducing by 40% in real terms since privatisation.

A 5% increase was declared in the final dividend to 26.61p per share which, together with the interim dividend of 10.28p, gives a final total of 36.89p – a 4.9% increase over 2004/05.