Bord Gáis sees 90% drop in profits while parent company steps up shareholder payouts

Energy supplier posted €2m profit for 2023, which was €34m less than in the previous year 

Results for parent company, Centrica, which also owns British Gas, were driven mostly by a strong performance for its UK retail arm, while profits were lower across other parts of the business, including trading, storage and nuclear.

Profits at energy giant Bord Gáis dropped by more than 90% last year, falling to €2m in 2023 as the company ramped up investment totalling €300m.

The gas and electricity supplier said it balanced pricing pressure in energy supply with a "strong performance" from its power generation and trading activities in 2023.

The €2m profit the company reported was €34m less than in 2022, with Bord Gáis adding that it absorbed some of the price increases in energy, as well as introduced a €7m Energy Support Fund to help vulnerable customers.

The giant said its planned €300m investment included continuing work on two gas-fuelled power plants in Athlone and Dublin that will supply electricity at times of high demand, confirming that they will be ready to supply power by the start of next year.

The company said it cut almost €1,000 from the average dual-fuel bill last year through two price reductions, with "continued investment in customer service" resulting in "a lower number of complaints per customer."

Bord Gáis is owned by British energy giant, Centrica, which this morning reported an adjusted operating profit of £2.75n (€3.21bn) for 2023, beating analyst estimates of £2.61bn (€3.05bn).  

Results for Centrica, which also owns British Gas, were driven mostly by a strong performance for its UK retail arm, while profits were lower across other parts of the business, including trading, storage and nuclear.

Centrica has also stepped up payouts to its shareholders after another year of soaring profits, with shares jumping by the most since July.

The Bord Gáis and British Gas owner increased its full-year dividend by 33% to 4 pence per share, the utility said in its earnings statement on Thursday. Total returns handed back to its owners amounted to £800m (€935m) last year, the firm said.

The boost for shareholders is likely to cause fresh public outcry as energy bills remain high even as inflation is dropping. Centrica said that sliding commodity prices are reducing volatility, which should lead to lower prices for consumers going forward.

Across Europe, utilities are adjusting to a sharp decline in gas and power prices after record levels during the 2022 energy crisis contributed to soaring profits. Centrica faced widespread criticism after bumper earnings in 2022 and the strong first half of 2023 as inflation and the worst cost-of-living crisis in decades strained households.

“Throughout 2023, Bord Gáis Energy has continued to invest in powering Ireland’s future economic success, progressing new and creative advances to deliver the energy transition, while supporting our customers through the worst of the energy crisis," said managing director of Bord Gáis, Dave Kirwan. 

"Support from Centrica enables us deliver strategic investments and a customer-centric approach which will continue to yield positive results in the long term. We are very conscious of the challenge Ireland faces on energy security and are investing significantly in our hydrogen-ready 100MW flexible gas peaking plants in Athlone and Dublin."

Additional reporting from Bloomberg.