Bord Gáis Energy has today announced a profit of €50m for the first half of 2024 as wholesale energy prices have fallen significantly since 2022 and early 2023 after hitting record highs following Russia's invasion of Ukraine.
The energy company, which is part of UK group Centrica, had reported a half year loss of €30m the same time last year and a half year profit of €40m in 2022.
It said that retail margins are still below pre-energy crisis levels, adding that the continued easing in commodity prices saw supply margins begin to return to more sustainable levels and allowed the company to pass on price reductions to customers.
Bord Gáis Energy said it is supporting customers with their transition to green energy, adding that its solar partnership with Irish Farmer's Association continues to support farmers generate their own electricity and cut energy bills.
It also said that two hydrogen-enabled gas peaking plants will allow for increasing levels of renewables generation on the grid from the middle of next year and represent an investment of around €300m.
Meanwhile, a joint venture with Corio Generation was announced in May to partner on offshore wind opportunities.
This builds on two recently announced partnerships that also support the renewable energy transition - with Mitsubishi to deliver the first ammonia plant in Europe, and with ESB and dCarbonX around hydrogen-ready gas storage at Kinsale.
Dave Kirwan, Managing Director of Bord Gáis Energy, said the company is committed to powering the country's economic growth and enabling the transition to green energy, and this is being made possible by capital investment by its parent company Centrica.
"With market conditions continuing to stabilise, we have been in a position to pass on price reductions to our customers. Strategic partnerships, such as with Corio Generation, will help us realise our ambition to lead the energy transition," he added.
Meanwhile, Centrica today reported a fall in first-half adjusted operating profit with profits at retail arm British Gas dropping due to lower energy prices and without a one off payment seen the previous year.
"Our core businesses continued to deliver in line with our expectations in the first half of 2024, against the backdrop of more normalised market conditions," chief executive Chris O'Shea said in the results statement.
The largest source of the company’s profits was its infrastructure division, which includes its stake in upstream gas producer Spirit Energy, its energy storage sites and its 20% stake in Britian’s nuclear fleet.
Infrastructure profits were €522m, down from €654m in the first half of 2023 on lower energy prices.
Adjusted profits at retail arm British Gas Energy dropped to £159m from £969m in the first half 2023.
Centrica said first half profits in 2023 were swelled by around £500m due to changes in regulator Ofgem’s price cap which allowed the firm to recover costs lost during the energy crisis and had warned this would not be repeated.
It said the division was also hit by lower commodity prices and customer numbers also slightly dipped.
The energy firm reported a total adjusted operating profit of £1.04 billion for the six months ended on June 30, compared with £2.08m a year earlier.
The company said Chair Scott Wheway would step down after five years in the role and non-executive director Kevin O'Byrne would succeed him on December 16.
Centrica increased its interim dividend to 1.5 pence from 1.33 pence and said its sharebuyback programme would be extended by £200m to be complete by around February 2025.
