ESB operating profit drops to €287m on weakened sterling

The ESB has reported an operating profit of €287 million in interim results, for the first half of the year.

It said the figure was down €50 million, primarily reflecting the impact of weakening sterling on earnings following the Brexit vote.

Profit after interest and tax of €64 million has decreased by €137 million primarily due to negative fair value movements on Northern Ireland inflation-linked interest rate swaps (non-cash) reflecting the current low interest rate environment, it said.

"In the face of intensifying competition and lower wholesale electricity prices, these results reflect a strong operating performance across the ESB Group," said finance director Pat Fenlon.

“ESB continues to focus on delivering value and investing in critical long-term electricity infrastructure for the benefit of our customers, shareholders and the wider Irish economy, and this is enabled by maintaining a strong financial position.”

Dividend of €31m

It made a dividend payment of €31 million for the period in respect of 2015. Total dividends paid to the Exchequer during the past 10 years amount to almost €1.5 billion.

The figures show a capital investment of €356 million which it described as “critical” long-term electricity infrastructure that would ultimately benefit the wider economy.

Electric Ireland, ESB’s supply business, reduced electricity unit prices for its residential customers by 6 per cent at the start of June 2016, it said, with a further reduction in gas unit prices of 5 per cent due from the start of October.

“This means Electric Ireland will have the lowest priced standard gas rate and lowest priced standard dual fuel (gas and electricity) rates in the Irish market.”

Electric Ireland has reduced both residential electricity and gas prices three times in less than two years, a total saving of €107 a year for the “typical household” and €187 for typical dual fuel (electricity and gas) customers compared to 2014 prices.

It has 7,600 direct employees and others benefitting through contractors and service providers.