Bord Gáis Éireann takes €298m charge as demand for Irish generated gas falls

Thursday 17 July 2014 08.54
Chief Executive Michael McNicholas said businesses "improved their performance across all key metrics"
Chief Executive Michael McNicholas said businesses "improved their performance across all key metrics"

Bord Gáis Éireann has reported a loss after tax of €169m as impairment charges pushed it into the red.

Earnings before accounting for interest, tax and depreciation grew by €58m to €437m for the year, as the company generated €458m in cash from operating activities and maintained a strong year end liquidity position.

The annual dividend paid to the Exchequer more than doubled to €50m.

Profit after tax was €130m, however exceptional charges and remeasures which arose in 2013 led to an overall accounting loss after tax of €169m.

These related primarily to a write-down on its Whitegate plant and the activation of the East-West interconnector.

The lower cost of energy produced from coal - as well as increased competition via the interconnector - has seen demand for Irish gas generation fall, which the company said affected revenue projections.

“Although exceptional charges meant that we recorded an overall accounting loss in 2013, our businesses improved their performance across all key financial metrics,” said chief executive McNicholas.

Both Bord Gáis Networks and Bord Gáis Energy performed well, reporting an EBITDA of €346m and €91m, respectively.

The sale of the Bord Gáis Energy business, by a consortium comprising Brookfield Renewable Power, Centrica and iCON Infrastructure, was closed on 30 June 30 2014, realising an enterprise value of €1.1 billion for the business.

Dividends to the State arising from the sale of the Energy business are expected to be up to €1 billion.