ESB Group has reported €679m in operating profit, before exceptional items, in 2021, a €63m increase on 2020, in its financial statements.
The increase in profit reflects higher energy margin in ESB’s Great Britain (GB) generation business (due to higher plant running and prices), positive foreign exchange movements, increased electricity demand and the timing of tariff changes in the networks business, offset by losses in the GB supply business.
In Ireland, energy margin in ESB’s generation and supply businesses were broadly in line with 2020.
ESB is recommending a dividend of €126m, up from €81m in 2020, bringing dividends to the Irish Exchequer in the last 10 years up to €1.2bn.
ESB’s performance in 2021 resulted in a return on capital employed of 5.6%, which is in line with prior years.
In 2021, ESB had a net exceptional charge of €63m, made up of non-cash impairment charges on the Neart na Gaoithe Scottish offshore wind farm project and on So Energy, a GB supply business, offset by gains on the sale of a 47% stake in Tilbury Green Power (a GB waste wood energy plant) and on the sale of part of the redeveloped Fitzwilliam Street Head Office complex in Dublin.
ESB, operating on the island of Ireland and Great Britain, said it continues to invest in critical electricity infrastructure (€1.2bn in 2021), including renewable generation.
Pat Fenlon, ESB’s chief financial officer, said: “In the context of the significant volatility in the energy markets, ESB delivered a positive set of financial results in 2021.
“We delivered a profit after tax of €191m, dividends of €126m and capital investment of €1.2bn.
“In line with our 2040 Net Zero Strategy, which is aligned with the Irish Government’s Climate Action Plan, ESB continues to significantly invest in energy infrastructure to decarbonise electricity, improve resilience and empower customers.
“Delivering long term value for the benefit of our customers, shareholders and the wider economy continues to be a key focus for ESB.”