ESB continues to invest in building and connecting renewables and reduce dependence on fossil fuels to achieve net zero carbon emissions by 2040
- Capital Investment of €532 million in energy infrastructure
- Operating Profit before exceptional items of €357 million, a decrease of €6 million on the same period in 2021
- Strategy – Driven to Make a Difference: Net Zero by 2040
Dublin, Friday 16th September 2022
ESB Group today published its Interim Financial Statements for the six months ended 30 June 2022 (H1 2022). During a period of continued volatility in energy markets, ESB delivered an operating profit before exceptional items of €357 million, a decrease of €6 million on the same period in 2021.
The decrease in operating profit is primarily due to regulated network tariff changes, losses incurred in ESB’s Customer Solutions business and foreign exchange movements. At a Group level, this reduction in profits was offset to a large extent by higher energy margins in ESB’s Generation business, reflecting increasing wholesale market prices.
ESB’s generation and supply businesses are required to operate separately, so increased profits from ESB’s generation business cannot be used to offset costs incurred by Electric Ireland. However, Group profits are invested in critical networks, renewable generation and other important energy infrastructure, as well as used to pay tax and dividends to the Government. Over the past 10 years, ESB has invested over €10 billion in energy infrastructure and paid over €1.2 billion in dividends.
ESB’s corporate strategy, Driven to Make a Difference: Net Zero by 2040, sets out a path to achieve net zero focused on decarbonised electricity, resilient energy infrastructure and empowering customers by:
- developing electricity networks to facilitate increased renewable connections along with the electrification of heat and transport;
- continuing to invest in low-carbon generation including significant offshore wind projects; and
- empowering customers to take more control of their energy use through smart tariffs and low-carbon energy services.
Commenting on the results Geraldine Heavey, ESB’s Chief Financial Officer, said:
“Volatility and high wholesale market prices continue to be a feature of energy markets in 2022. In the first six months of 2022, ESB delivered an operating profit before exceptional items of €357 million and capital investment of €532 million. This provides the basis for continued strong investment in energy infrastructure to decarbonise electricity, improve resilience and empower customers in line with our 2040 Net Zero Strategy.”
Electric Ireland is committed to helping our customers during these difficult times by offering flexible payment options and by making available a €3 million Hardship Fund for customers who are experiencing payment difficulties at the coldest time of the year.
ESB’s networks businesses (ESB Networks and NIE Networks) continue to focus on connecting renewables and delivering reliable and safe electricity over increasingly smart networks to 3.2 million homes, farms and businesses across the island of Ireland. The roll out of smart meters in the Republic of Ireland has continued with over 850,000 installed by the end of June 2022.
Contribution to the Economy
ESB contributes €2 billion annually to the Irish economy through dividends, investments, taxes, and jobs.
ESB provides significant employment both directly, with more than 8,000 employees, and indirectly through contractors and service providers.
ESB invested over €0.5 billion in energy infrastructure in H1 2022 bringing our total capital investment over the last 10 years to over €10 billion.
The ESB Group Financial Statements for the six months ended 30 June 2022 can be found here – www.esb.ie/investors
ESB operates across the electricity market: from generation, through transmission and distribution to the supply of customers. In addition, we invest in supplying gas, energy services and, through Siro (our joint venture with Vodafone), fibre for telecommunications. In H1 2022 ESB had a 31% share of generation in the all-island market (via ESB Generation and Trading) and a 41% share of electricity supply in the all-island market (via Electric Ireland). ESB Networks owns the distribution and transmission networks in the Republic of Ireland and Northern Ireland Electricity Networks owns the distribution and transmission networks in Northern Ireland.