ESB Group has disclosed an impressive operating profit of €676 million for the first half of 2023, marking a significant increase of €157 million or 30% compared to the same period in 2022. This financial update was presented in the company's interim financial report for the first half of 2023.
The noteworthy upswing in profits is primarily attributed to ESB's operations in Great Britain (GB), where the Group experienced higher energy margins in its GB Generation and Trading business. Additionally, the company's energy supply business in GB demonstrated improved performance.
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This robust financial performance has empowered ESB to make substantial investments, totaling €779 million in capital expenditure for the period. This represents a remarkable 46% increase compared to the same period in the previous year. These investments are channeled into critical infrastructure projects aimed at ensuring the reliability and sustainability of the electricity system as the company aligns with its transition to a net-zero future.
Commenting on the increased investment, Paul Stapleton, Chief Financial Officer of ESB, emphasized its necessity, stating, “This increased level of investment is required to ensure a reliable and sustainable electricity system as we transition to net zero.” He further explained, “These results, and the sustained financial stability of ESB, provide the basis for continued strong investment in a cleaner and more resilient energy future in line with the company's strategic ambition of Net Zero by 2040.”
ESB is actively pursuing an ambitious agenda of developing new wind and solar generation while substantially increasing the capacity of renewable generation integrated into Ireland's electricity grids. The company is strategically focused on meeting Ireland's escalating demand for renewable energy, particularly in offshore wind projects and complementary green hydrogen initiatives.
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Many of these endeavors are being advanced through collaborations with prominent global players in the renewables sector, with the potential for investments exceeding €20 billion between now and 2040.
Under its “Networks for Net Zero” strategy, ESB Networks is planning to invest €10 billion in creating a more flexible and intelligent electricity network by 2030.
