ESB Group’s operating profit rises 30pc to €676m in first half of 2023

ESB Group has reported a 30pc rise in operating profit in the first half of 2023.

Group operating profit rose to €676m, up €157m from the same period last year.

The energy company said this increase was primarily related to the group’s operations in Great Britain.

ESB pointed to a higher energy margin earned in the group’s generating and trading business in this market, as well as an improved performance in its energy supply business there.

Revenue in ESB Networks also increased due to changes in regulated network tariffs, as well as benefits associated with foreign exchange movements.

ESB said these positive impacts were partially offset by lower profitability in its Electric Ireland business for the six-month period.

The group said that its generation and supply businesses are required to operate separately. As a result, profits from the generation business cannot be used to lower prices for Electric Ireland customers.

"We fully understand that people find it difficult to comprehend energy company profits at a time when prices for families and businesses remain high,” chief financial officer Paul Stapleton said.

"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.”

He added that market conditions have stabilised in the first six months of 2023, with wholesale prices down from the highs recorded last year. However, they remain above the prices seen before the energy crisis.

“If this downward trend in wholesale prices continues, customers should progressively see the benefit reflected in lower energy prices,” he said.

Electric Ireland recently announced reductions of 10pc for electricity and 12pc for gas for its 1.1 million residential customers in Ireland.

The group said it had now invested €779m of capital expenditure in critical infrastructure, up 46pc on the same period in 2022.

"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,” Mr Stapleton added.

ESB has provided approximately €1.5bn in dividends to the State over the past decade. This includes a €317m dividend from 2022 profits.

Reporting on: www.independent.ie