Energia units see profits surge as prices rise

Two Energia power-generation firms recorded a surge in combined pretax profits to €112.3 million last year. New accounts filed by Energia’s Huntstown Power Company Ltd and Energia Power Generation Ltd show that both energy firms benefited from the increase in energy prices in the 12 months to the end of March last.

However, the pretax profits recorded by the two firms were partly off-set by losses at a third Energia firm, Energia Customer Solutions Ltd.

The main activity of Energia Customer Solutions is the supply of electricity and gas to residential and non-residential customers in Ireland. The business recorded pretax losses of €40.2 million in the 12 months to the end of March 2022, and this followed a pretax profit of €32.9m in the prior year – a negative swing of €73.1 million. The firm made the loss despite revenues increasing by €351 million or 37 per cent from €948 million to €1.29 billion.

The directors’ report states that the higher Integrated Single Electricity Market (ISEM) market prices have adversely impacted the Customer Solutions operations of the company. However, they state that was partly offset by the benefit of prices to the Renewable Power Purchase Agreements (PPAs) operations of the business.

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They state that the company’s operating loss of €33.6 million primarily reflected lower electricity and gas margins due to higher commodity and energy prices, together with higher operating costs.

The business’s residential electricity and gas customer sites decreased from 276,800 in 2021 to 265,100 last year, while non-residential electricity customers decreased from 49,400 to 48,000 and non-residential gas customer sites decreased from 3,800 to 3,500.

Numbers employed by the business last year totalled 83 as staff costs totalled €8.59 million.

Energia operates two combined cycle gas turbine (CCGT) plants at its Huntstown site in north Dublin.

Huntstown Power Company Ltd operates a 343MW CCGT and last year pretax profits more than tripled from €15.4 million to €47.4 million as revenues increased by €266.19 million from €118.7 million to €384.9 million.

The directors state that the profit primarily reflects higher market prices and margins as a result of lower availability of other thermal plants, lower wind generation and higher commodity prices.

Separate accounts for Energia Power Generation Ltd which operates the 404MW CCGT at the Huntstown power station site show that its pretax profits increased almost three fold from €22.7 million to €64.9 million. The €64.9 million pretax profit take account of a €30 million property impairment reversal.

The firm enjoyed the profit surge as revenues almost doubled from €108.7 million to €205.8 million.