National: 'We remain committed to supporting our customers' - ESB announces €676 million profit in last six months

The ESB has today announced a sizeable 30% increase in profits for the first six months of 2023, totalling a whopping €676 million. 

During a period of which the group called continued uncertainty and change for the energy industry, this represents an increase of €157 million on the same period in 2022.

Commenting on the results, Paul Stapleton, ESB’s Chief Financial Officer said: "We fully understand that people find it difficult to comprehend energy company profits at a time when prices for families and businesses remain high. As ESB's generation and supply businesses are required to operate separately, we cannot use profits from ESB's generation business to offset Electric Ireland's prices.

"However, we remain committed, as we have been throughout the energy crises, to supporting our customers in so far as we can. It remains crucial that ESB continues to earn sufficient profits to allow us to support the increased investment required to deliver a future powered by clean electricity."

The group has said the profit will enable ESB to invest €779 million of capital expenditure (an increase of 46% on the same period last year) in critical infrastructure and the increase primarily relates to its operations in Great Britain.

Revenue in ESB Networks also rose as a result of regulated network tariff changes, while the group also benefitted from foreign exchange movements.

"This increased level of investment is required to ensure a reliable and sustainable electricity system as we transition to net zero.

"During the first six months of 2023, ESB invested €779 million of capital expenditure to support energy security and to lower the carbon intensity of our networks and our generation portfolios. These results, and the sustained financial stability of ESB, provide the basis for continued strong investment in a cleaner and more resilient energy future in line with the company’s strategic ambition of Net Zero by 2040", said the groups Chief Financial Officer.

ESB has said it is investing heavily in the development of new wind and solar generation and significantly increasing the amount of renewable generation connected to Ireland’s electricity networks and has ambitious plans to help meet Ireland's growing renewable energy needs, particularly in offshore wind and complementary green hydrogen projects. 

The group has also provided nearly €1.5 billion in dividends to the State over the past 10 years, including a €317 million dividend from 2022 profits. Dividends from 2023 profits will be considered at the end of the financial year.

"ESB recognises the ongoing challenges posed by high energy prices for our customers.  

"Encouragingly, the levels of volatility in global energy markets experienced in 2022 eased somewhat in the first half of 2023. Market conditions have been relatively more stable in the first six months of this year, with wholesale prices reduced from the peaks of 2022, albeit they are still significantly higher than pre-energy crisis levels.

"If this downward trend in wholesale prices continues, customers should progressively see the benefit reflected in lower energy prices. It is positive that Electric Ireland was in a position recently to announce reductions of 10% for electricity and 12% for gas for its 1.1m residential customers in the Republic of Ireland. Electric Ireland continues to offer competitive retail prices as it has throughout the energy crisis and keeps its prices under constant review", added the CFO.