Bord Na Móna's profits have dropped by almost €5m to €29.2m due to continuing problems with two peat-fired power stations which the company supplies.
The ESB power stations at Shannonbridge in Co Offaly and Lanesborough in Co Longford were built at a cost of €500m in the past five years.
Last summer corrosion of pipes was discovered in both stations leading to the plants being closed. It is understood the problems were caused by a design fault.
In recent weeks it has emerged they will remain closed indefinitely.
Despite the lower profits, the company paid the State a dividend of €3.9m.
Meanwhile, Bord na Móna's Managing Director John Hourican is standing down as he comes to the end of his seven-year term of office.
But Mr Hourican is taking High Court action in an effort to secure a golden handshake.
His contract was renewed annually and Mr Hourican is arguing this makes him a permanent employee.
He is seeking payment to reflect the fact that when he leaves his position he will have four years before retirement.
It is understood the payment would be in the region of €1.8m.
