ESB reports 34% fall in profit as energy markets normalise 

The company recorded a profit of €446m between January and the end of June. 

ESB Group has reported a fall in operating profit in the first six months of the year as the global energy markets normalised after a period of volatility and a reduction in prices.

According to the company’s latest financial statements, it recorded a profit of €446m between January and the end of June - a drop of 34%, or €230m, compared to the same period last year.

The company’s profit after tax and after exceptional items comes down to €171m.

In its results, ESB said although its operating profit remains ahead of previous norms the reduction compared to last year is “primarily due to lower energy margins” earned in its generation and trading business reflecting the “continued normalisation of global energy markets” since 2022.

ESB’s chief financial officer Paul Stapleton said the “significant softening” of the wholesale electricity market follows an “unprecedented period of upward volatility in energy prices".

“The significant softening of wholesale market prices has reduced the level of profitability in our generation business in both Ireland and the UK compared to the same period last year,” he said.

“However, increased profits from our networks’ businesses, reflecting the continued substantial investment in those areas, provided resilience to the Group position and a robust overall performance.” 

In relation to ESB’s retail arm Electric Ireland, Mr Stapleton said it has passed on the benefit of wholesale price reductions to its customers.

“We are very mindful of the impact of continued elevated energy prices, and we remain committed to supporting our customers in so far as we can.” 

ESB said during the first half of the year it made capital investments of €751 million in energy infrastructure and network resilience projects - all of which is funded through the profits generated and additional borrowings.

An exceptional provision of €135 million has been recognised as of the end of June related to the Neart na Gaoithe offshore wind project, a joint venture development between ESB and EDF Renewables off the east coast of Scotland.

The charge arises as a result of delays to the construction programme experienced during 2024.

ESB said it remains confident that the project will achieve full commercial operation in 2025 and will be a valuable asset for ESB, as well as reducing carbon emissions from electricity generation over the longer term.