Bord Gáis Energy said it made a profit of €50 million in the first half of the year as it continued to invest in transitioning to a green energy company.
The company said the profit comprised retail, trading and assets performance. Energy prices have fallen from the highs seen during the energy crisis, with reductions passed on to customers as the market stabilised. Last year, the company recorded a €30 million loss for the same period after high wholesale prices forced it to absorb higher costs.
Retail margins are below pre-energy crisis levels, Bord Gáis said, with assets and gas trading optimisation helping to offset any fall-off in its retail business. Among the assets owned by the company is a 445MW energy efficient power generation plant in Whitegate, Co Cork, which is capable of supplying enough energy to power up to 400,000 homes.
The trading side of the business buys gas and electricity on the international wholesale markets to meet customer demands, and when more energy is generated than needed, the company sells and trades it.
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The energy company has been investing in its future supply as Ireland moves to bolster its energy supplies and renewables. Bord Gáis said two hydrogen enabled power plants it is building at a cost of €300 million should begin generating electricity by mid 2025, bringing an increased level of renewables generation. The company also announced a joint venture with Corio Generation in May to enter the offshore wind market.
“We are committed to powering Ireland’s economic growth and enabling the transition to green energy, and this is being made possible by capital investment by our parent company Centrica,” said Dave Kirwan, managing director of Bord Gáis Energy.
“Strategic partnerships, such as with Corio Generation, will help us realise our ambition to lead the energy transition. And because how we do business is important to us, we will continue to invest in our Energy Support Fund and to support Focus Ireland.”
Parent company Centrica’s adjusted operating profit more than halved to £1.04 billion in the six months through June as energy prices returned to more normal levels after the crisis.
The owner of British Gas said will extend its programme to return cash to shareholders, before an expected multi billion-pound investment in the UK’s Sizewell C nuclear power station.
Centrica plans to buy a further £200 million in shares, it said in its earnings statement on Thursday. The new programme will add to the already £1 billion that started in November 2022. The stock slumped after investor hopes for more generous rewards were disappointed.
Centrica’s profits have been publicly scrutinised and faced widespread criticism as the country grappled with soring inflation during the cost-of-living crisis. The latest set of results also come after figures showing UK households have accumulated energy debts of £3.3 billion even as bills ease, a reminder that lower power and gas costs haven’t tempered the financial constraints for many households. - Additional reporting: Bloomberg
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