- Operating profit of €676m
- Capital investment increased by 46% to €779m
- Results provide basis for continued strong investment in a more sustainable and resilient energy future in line with ESB’s strategic ambition of Net Zero by 2040
Issued: Tuesday 19 September 2023
ESB Group has today published its Interim Financial Statements for the six months ended 30 June 2023 (H1 2023) during a period of continued uncertainty and change for the energy industry.
Group operating profit of €676 million for the six months to June 2023 represents an increase of €157 million (30%) on the same period in 2022 and has enabled ESB to invest €779 million of capital expenditure (an increase of 46% on the same period last year) in critical infrastructure.
The increase in operating profit primarily relates to ESB’s operations in Great Britain (GB), with higher energy margin* earned in the Group’s GB Generation and Trading business and improved performance in ESB’s GB energy supply business. In addition, revenue in ESB Networks rose as a result of regulated network tariff changes, and ESB also benefitted from foreign exchange movements. These positive movements were partially offset by lower Electric Ireland profitability for this six-month period versus the first half of 2022.
Capital investment at €779m increased by 46% compared to the same period last year. Commenting on the results, Paul Stapleton, ESB’s Chief Financial Officer said:
“We fully understand that people find it difficult to comprehend energy company profits at a time when prices for families and businesses remain high. As ESB’s generation and supply businesses are required to operate separately, we cannot use profits from ESB’s generation business to offset Electric Ireland’s prices. However, we remain committed, as we have been throughout the energy crisis, to supporting our customers in so far as we can. It remains crucial that ESB continues to earn sufficient profits to allow us to support the increased investment required to deliver a future powered by clean electricity.
“This increased level of investment is required to ensure a reliable and sustainable electricity system as we transition to net zero. During the first six months of 2023, ESB invested €779 million of capital expenditure to support energy security and to lower the carbon intensity of our networks and our generation portfolios. These results, and the sustained financial stability of ESB, provide the basis for continued strong investment in a cleaner and more resilient energy future in line with the company’s strategic ambition of Net Zero by 2040.”
ESB is investing heavily in the development of new wind and solar generation and significantly increasing the amount of renewable generation connected to Ireland’s electricity networks. ESB has ambitious plans to help meet Ireland's growing renewable energy needs, particularly in offshore wind and complementary green hydrogen projects. Much of this is being progressed through partnerships with leading global players in the renewables sector, with potential for investment of over €20 billion between now and 2040. ESB Networks, through its Networks for Net Zero strategy, plans to invest €10 billion in a more flexible and smarter electricity network out to 2030.
ESB has provided approximately €1.5 billion in dividends to the State over the past 10 years, including a €317 million dividend from 2022 profits. Dividends from 2023 profits will be considered at the end of the financial year.
Acknowledging the challenge for our customers, Electric Ireland has committed over €63 million to customer supports since winter 2020. This included foregoing profits in its ROI residential electricity business in 2022, and giving a €50 credit to each of its 1.1m customers, which was paid in early 2023.
Paul Stapleton continued: “ESB recognises the ongoing challenges posed by high energy prices for our customers. Encouragingly, the levels of volatility in global energy markets experienced in 2022 eased somewhat in the first half of 2023. Market conditions have been relatively more stable in the first six months of this year, with wholesale prices reduced from the peaks of 2022, albeit they are still significantly higher than pre-energy crisis levels. If this downward trend in wholesale prices continues, customers should progressively see the benefit reflected in lower energy prices. It is positive that Electric Ireland was in a position recently to announce reductions of 10% for electricity and 12% for gas for its 1.1m residential customers in the Republic of Ireland. Electric Ireland continues to offer competitive retail prices as it has throughout the energy crisis and keeps its prices under constant review.”
The full interim financial results for H1 2023 can be accessed here.
* Energy Margin= energy related sales less direct energy costs, before overheads and operating costs
ENDS/
Torthaí eatramhacha fógartha ag BSL don leathbhliain dar críoch an 30 Meitheamh 2023
- Brabús oibriúcháin €676m
- Méadú 46% ar infheistíocht chaipitil go €779m
- Cuireann na torthaí bonn faoi infheistíocht láidir leanúnach i dtodhchaí fuinnimh a bheidh níos inbhuanaithe agus níos seasmhaí i gcomhréir le huaillmhian straitéiseach BSL maidir leis an Neodracht Charbóin faoi 2040
Arna eisiúint: Dé Máirt, an 19 Meán Fómhair 2023
D’fhoilsigh Grúpa BSL a Ráitis Eatramhacha Airgeadais inniu do na 6 mhí dar críoch an 30 Meitheamh 2023 (L1 2023), tréimhse a raibh an tionscal fuinnimh fós faoi scamall na héiginnteachta agus an athraithe.
Is ionann brabús oibriúcháin an Ghrúpa agus €676 mhilliún do na 6 mhí go Meitheamh 2023 agus méadú €157 milliún (30%) ar an tréimhse chéanna in 2022, rud a chuir ar chumas BSL €779 milliún de chaiteachas caipitIúil (méadú 46% ar an tréimhse chéanna anuraidh) a infheistiú i mbonneagar criticiúil.
Baineann an méadú ar bhrabús oibriúcháin go príomha le hoibríochtaí BSL sa Bhreatain Mhór, agus corrlach fuinnimh níos airde* tuillte i ngnó Giniúna agus Trádála GB an Ghrúpa agus feidhmíocht fheabhsaithe sa ghnó soláthair fuinnimh atá ag BSL sa Bhreatain Mhór. Ina theannta sin, d’ardaigh an t-ioncam in ESB Networks mar thoradh ar athruithe rialáilte ar tharaifí líonra, agus bhain BSL tairbhe as gluaiseachtaí malairte eachtraí, leis. Rinneadh na gluaiseachtaí dearfacha sin a fhritháireamh go páirteach le brabúsacht Electric Ireland níos ísle don tréimhse 6 mhí sin i gcomparáid leis an gcéad leath de 2022.
Tháinig méadú 46% ar infheistíocht chaipitil go €779m i gcomparáid leis an tréimhse chéanna anuraidh. Ag labhairt dó faoi na torthaí, dúirt Paul Stapleton, Príomhoifigeach Airgeadais BSL an méid seo a leanas:
“Tuigimid go hiomlán go dtéann sé deacair ar dhaoine brabúis na gcomhlachtaí fuinnimh a thuiscint tráth a bhfuil praghsanna do theaghlaigh agus do ghnólachtaí fós ard. Óir ceanglaítear ar ghnólachtaí giniúna agus soláthair BSL a bheith ag feidhmiú ar leithligh, ní féidir linn na brabúis ó ghnólacht giniúna BSL a úsáid chun praghsanna Electric Ireland a fhritháireamh. Mar sin féin, táimid tiomanta i gcónaí, mar a bhíomar ó thús na géarchéime fuinnimh, tacú lenár gcuid custaiméirí a mhéid is féidir linn. Beidh sé ríthábhachtach i gcónaí go leanfaidh BSL de bhrabúis leordhóthanacha a thuilleamh chun go mbeimid in ann tacú leis an infheistíocht mhéadaithe is gá chun leictreachas glan a sholáthar amach anseo.
“Tá gá leis an leibhéal méadaithe infheistíochta sin chun córas leictreachais iontaofa agus inbhuanaithe a chinntiú agus muid ag aistriú chuig an neodracht charbóin. Le himeacht na chéad 6 mhí de 2023, d’infheistigh BSL €779 milliún de chaiteachas caipitiúil chun tacú le slándáil fuinnimh agus chun déine carbóin ár líonraí agus ár bpunann giniúna a ísliú. Cuireann na torthaí seo, agus cobhsaíocht airgeadais leanúnach BSL, bonn faoi infheistíocht láidir leanúnach i dtodhchaí fuinnimh a bheidh níos glaine agus níos seasmhaí i gcomhréir le huaillmhian straitéiseach na cuideachta maidir leis an Neodracht Charbóin faoi 2040.”
Tá infheistíocht mhór á déanamh ag BSL i bhforbairt na giniúna nua gaoithe agus gréine, agus i méadú suntasach ar mhéid na giniúna in-athnuaite atá nasctha le líonraí leictreachais na hÉireann. Tá pleananna uaillmhianacha ag BSL chun a chion féin a dhéanamh le freastal ar riachtanais fuinnimh in-athnuaite na hÉireann atá ag dul i méid, go háirithe i dtionscadail ghaoithe amach ón gcósta agus i dtionscadail chomhlántacha na hidrigine glaise. Tá go leor de sin á chur ar aghaidh trí chomhpháirtíochtaí le gníomhaithe forásacha domhanda in earnáil na n-athnuaiteán, agus d’fhéadfaí breis agus €20 billiún a infheistiú idir seo agus 2040. Tá sé beartaithe ag ESB Networks, trína straitéis Líonraí i dTreo na Neodrachta, €10 mbilliún a infheistiú i líonra leictreachais níos solúbtha agus níos cliste idir seo agus 2030.
Tá thart ar €1.5 billiún curtha ar fáil ag BSL i bhfoirm díbhinní don Stát le 10 mbliana anuas, lena n-áirítear díbhinn dar luach €317 milliún ó bhrabúis 2022. Is ag deireadh na bliana airgeadais a dhéanfar machnamh ar dhíbhinní ó bhrabúis 2023.
Agus aitheantas á thabhairt don dúshlán dár gcuid custaiméirí, tá os cionn €63 mhilliún geallta ag Electric Ireland do thacaíochtaí do chustaiméirí ó gheimhreadh 2020 i leith. Áiríodh leis sin tarscaoileadh brabús roimhe seo ina ghnólacht leictreachais chónaithe i bPoblacht na hÉireann in 2022, agus creidmheas €50 a thabhairt do gach ceann dá 1.1m custaiméir, a íocadh go luath in 2023.
Dúirt Paul Stapleton chomh maith: “Aithníonn BSL cé chomh dúshlánach agus atá na praghsanna arda fuinnimh atá ann faoi láthair dár gcuid custaiméirí. Is ábhar misnigh é gur laghdaigh na leibhéil luaineachta sna margaí fuinnimh domhanda a tharla in 2022 beagán sa chéad leath de 2023. Bhí dálaí an mhargaidh réasúnta níos cobhsaí sa chéad 6 mhí i mbliana, agus laghdaíodh praghsanna mórdhíola ó bhuaiceanna 2022, cé go bhfuil siad fós i bhfad níos airde ná na leibhéil a bhí i réim roimh an ngéarchéim fuinnimh. Má leanann an treocht anuas seo i bpraghsanna mórdhíola, ba cheart go bhfeicfeadh custaiméirí an sochar de réir a chéile mar phraghsanna fuinnimh níos ísle. Is rud dearfach é go raibh Electric Ireland in ann laghduithe 10% don leictreachas agus 12% don ghás a fhógairt le déanaí dá 1.1m custaiméir cónaithe i bPoblacht na hÉireann. Tá praghsanna miondíola iomaíocha á dtairiscint ag Electric Ireland i gcónaí mar atá déanta aige i rith na géarchéime fuinnimh agus coinníonn sé a phraghsanna faoi athbhreithniú leanúnach.”
Is féidir teacht ar na torthaí airgeadais eatramhacha iomlána do L1 2023 anseo.
* Corrlach Fuinnimh = díolacháin a bhaineann le fuinneamh lúide costais dhíreacha fuinnimh, roimh fhorchostais agus costais oibriúcháin