ESB Group profits rise to €868m in 2023

ESB

Caoimhe Gordon

ESB Group saw profit after tax jump by 33.7pc to €868m last year, according to annual results published by the group.

Operating profit rose to €1.1bn in the same period, up €274m from 2022.

The energy company said this increase was driven by its regulated networks business , as well its operations in Great Britain, which accounted for 23pc of profits

The group’s generating and trading business recorded an operating profit of €730m in 2023.

This reflected a €44m decline in operating profits following increased business development costs, the Government scheme to cap market revenues and increased headcount.

Operating profit in ESB’s Networks division increased €152m to €359m due to higher regulated income.

ESB said that its customer solutions division recorded an operating loss of €12m in 2023, an improvement from a loss of €109m a year earlier.

Electric Ireland’s profitability was lower as a result of price reductions.

ESB’s chief financial officer Paul Stapleton said that, despite these price cuts, ESB is “very mindful” that high energy prices continue to pose challenges for customers.

The group’s generation and supply businesses are required to operate separately. As a result, profits from the generation business cannot be used to lower prices for Electric Ireland customers.

The group said it invested €1.7bn of capital expenditure into critical infrastructure last year, a record high for the group.

ESB is now recommending a dividend of €220m, bringing dividends to over €1.4bn over the past four years. In January of this year, ESB also paid €76m to the Government under its scheme to cap market revenues of electricity generators from December 2022 to June 2023.

“While the extraordinary volatility experienced in global energy markets in 2022 eased in 2023, wholesale prices were still unpredictable and significantly higher than the levels seen prior to the energy crisis,” Mr Stapleton said, adding that these conditions influenced the group’s financial performance.

“The funding of our capital expenditure programme – forecasted at over €11bn over the next five years – will require continued strong financial performance and further profit growth,” he concluded.