Irish developer ESB has made a provision for a €135m “exceptional finance cost” in relation to the delayed 450MW Neart na Gaoithe offshore wind farm off east Scotland.
The Dublin-based utility, which is building the project in partnership with EDF Renewables, said the “expected credit loss” comes following a review carried out at the end of its 2024 financial year, according to an annual report released today.
The review looked at a revised project timeline, which will see the scheme finished this summer several years behind schedule, as well as additional constructions costs, the impact of inflation and other elements of future operations.
“The expected credit loss was assessed as €134.6 million as at 31 December 2024, which has been recognised in the Group Income Statement as an exceptional finance cost,” ESB stated.
“Construction of the project is now progressing well and is close to completion. The first export of power to the grid was achieved in October 2024.”
ESB said the delays occurred due to “delivery issues on the foundation package and construction delays as a result of COVID-19 impacts”.
The exceptional comes on top of other impairments booked by ESB on the project, including over €150m in 2021.
ESB meanwhile booked €706m in profit after tax, according to today’s results, with a €2.2bn record outlay on capital investment.