ESB Group reports huge rise in profits

ESB Group has reported a significant increase in profits for the first half of the year, as customers face soaring energy bills.

The electricity company saw revenues of 3.7 billion euro in the first six months of 2022, a 1.5 billion euro increase on the same period last year.

Profit after tax and exceptional items rose to 390 million euro – almost three times higher than last year’s figure.

According to the firm’s half-year results, it made a profit of 128 million euro in the first six months of 2021.

The significant increase in profits reflects soaring energy prices in international markets and rises in consumers’ bills.

It comes as the Government said it will introduce a windfall tax on the soaring profits of energy firms.

Tanaiste Leo Varadkar said the tax will be backdated to before the energy crisis, meaning profits for the full year will be targeted.

In a statement published alongside its interim financial results, ESB said: “ESB’s generation and supply businesses are required to operate separately, so increased profits from ESB’s generation business cannot be used to offset costs incurred by Electric Ireland.

“However, group profits are invested in critical networks, renewable generation and other important energy infrastructure, as well as used to pay tax and dividends to the Government.”

It said that, over the past 10 years, ESB has invested more than 10 billion euro in energy infrastructure and paid more than 1.2 billion euro in dividends.

Chief financial officer Geraldine Heavey said: “Volatility and high wholesale market prices continue to be a feature of energy markets in 2022.

“In the first six months of 2022, ESB delivered an operating profit before exceptional items of 357 million euro and capital investment of 532 million euro.

“This provides the basis for continued strong investment in energy infrastructure to decarbonise electricity, improve resilience and empower customers in line with our 2040 net zero strategy.”