State-owned Bord Gáis has reported a fall in pre-tax profits for last year, blaming lower gas prices and significant investment spending.
In its annual report, it says pre-tax profits last year were €119m, a drop of €32m from 2008. Earnings before interest, tax, depreciation and amortisation rose 7%, however, to just under €320m.
Chief executive John Mullins said the financial performance was strong, as the company had cut gas prices three times in 12 months and carried out a substantial investment programme. This included the acquisition of Cork-based SWS Natural Resources, one of the largest wind generators in Ireland, for €500m.
Mr Mullins said the company had also spent €170m on replacing the entire cast iron gas pipe network throughout the country.
Bord Gáis said 350,000 new customers switched to the company last year, as it lured electricity customers away from ESB.
Asked about talk that Minister Eamon Ryan was considering a move to break up Bord Gáis, Mr Mullins told RTE radio this would be in line with EU guidelines on providing greater separation between its networks and energy businesses. But he said both would remain under the same group.
Mr Mullins also said the company was now worth €3.5 billion. He said the level of disconnections was still running at around 400 a month, and many of these were due to people leaving the country and leaving a significant amount of debt behind. Mr Mullins urged those who had difficulty paying bills to contact the company to work out a budget plan.
He said the company was hoping to create around 250 jobs over three years through the building of wind energy assets, and another 250 through its home services initiative, which involves upgrading homes to make them more energy efficient.
