Energia Group’s earnings declined by more than a fifth in the six months to September, just before French private equity firm Ardian agreed to buy the all-Ireland power company in an estimated €2.5 billion deal.
Earnings before interest, tax, depreciation and amortisation (Ebitda) fell 22.5 per cent to €122.2 million for the period, compared to the first half of its last financial year, according to its latest financial statement, posted on its website.
The company saw earnings decline in its customer supply business and gas-fired power plants in north Dublin, but rise slightly in its renewable energy portfolio. The performance is understood to have been in line with management expectations given dynamics at play in the industry.
US investment group I Squared, which has owned Energia for almost a decade, agreed in early October to sell the business to Ardian. While the price was not disclosed, the deal is believed to have put an enterprise value on the business of about €2.5 billion. It is on track to close early next year.
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Energia serves almost 900,000 homes and businesses. It is one of the longest-established providers of renewable electricity in Ireland, supplying about 17 per cent of the island of Ireland’s total electricity requirements and 20 per cent of its total wind power.
An Bord Pleanála gave Energia permission in March to build a data centre in Huntstown in partnership with tech giant Microsoft, adding to the investment case.
Energia, led by chief executive Ian Thom, said it was continuing to develop a pipeline of almost 1.6 gigawatts (GW) of solar and onshore wind projects and was assessing “a number of other opportunities to acquire and develop further renewable development projects”, as power demand is forecast to grow strongly over the coming decade amid the green transition and data centre boom.
The group and its offshore wind joint venture partner, Norway’s Vårgrønn, were among parties that lost out last month as the Government provisionally awarded ESB and Ørsted of Denmark the right to develop the so-called Tonn Nua site off the coast of Co Waterford. The outcome was confirmed on Monday.
Ebitda in the flexible generation division, mainly made up of two combined cycle gas turbine plants in Huntstown in north Co Dublin with a total capacity of 747MW, dropped 35 per cent to €26.4 million amid planned and unplanned outages at the facilities during the period, as well as lower energy prices.
The customer supply business saw earnings fall 28 per cent to €55.5 million amid lower margins. The company subsequently increased its residential electricity tariffs in Northern Ireland and the Republic by 4 per cent and 10.9 per cent, respectively, in October.
However, the renewables business, which owns 358 megawatts (MW) of wind assets and purchases electricity from 1.19 gigawatts (GW) of third-party green energy producers, delivered a 1.3 per cent increase in Ebitda, to €40.3 million. This reflected higher wind output, though it was partly offset by lower energy prices.
