Record sales revenue helps spark healthy profit for ESB
Related Articles
The State-owned electricity company ESB reported a profit of €432m for 2007 as sales reached the €3.5bn mark for the first time in its history, the group's latest annual report reveals.
The Government was paid a dividend of €129m.
During the year it connected 94,400 new customers, bringing the level of connections since 2001 to more than 580,000.
However, the huge decline in the construction industry means new business is expected to fall off sharply this year, with chief executive Padraig McManus forecasting that the level of new connections in 2008 will fall to between 55,000 and 60,000.
Last year the group spent over €900m on its capital investment programme, a spend which included the new power station being constructed in Cork and the retro fit of equipment to clean up discharges from the coal-fired plant at Moneypoint.
But it spent the lion's share of the capital budget upgrading the network, which accounted for €600m of the total.
The company is committed to a huge capital spend over the coming years and has already announced the start of a €22m investment programme aimed at modernising the group's electricity generation network.
ESB chairman Lochlann Quinn described the company's performance in 2007 as excellent. He said its "healthy financial performance provides a solid foundation for its recently announced €22bn investment strategy aimed at radically reducing carbon emissions while enhancing security of supply."
Last year also saw the introduction of the Single Electricity Market on the island, creating one, larger, market north and south of the border. Mr McManus said the ESB's generation market share is now 40pc of the all-island market.
He also said the company's asset strategy agreement with the CER, involving the divestment of generation assets, is due to be completed by the year end.
This involves the sale of two power stations, at Great Island and Tarbert, two peaking plants and two sites at Lanesboro and Shannonbridge.
The company has pledged to reduce its carbon emissions by 30pc by 2010; by 50pc by 2020 and is aiming to be have zero carbon emissions by 2035.
The accounts show that the chief executive was paid a total of €535,000 last year, up from €495,000 in 2006.
- Pat Boyle
