ESB (Electricity Supply Board) has reported a profit after tax of €706 million for 2024, a decrease of 19% compared to the €868 million recorded in 2023. The drop in profits was largely attributed to reduced gross margins in ESB’s Generation and Trading segments, both in Ireland and Great Britain.
Despite the decline in profits, ESB highlighted a record capital investment of €2.2 billion in critical energy infrastructure during the year. This investment included joint ventures and aimed at enhancing the company’s energy generation and distribution capabilities.
ESB’s efforts to decarbonize its energy system were also evident, with the company achieving a 46% reduction in the carbon intensity of its power generation compared to a 2005 baseline.
Paul Stapleton, Chief Financial Officer at ESB, commented on the company’s financial performance: “Our profit after tax for 2024 at €706m is a reduction of 19% on the previous year. Nevertheless, it represents a solid performance in the context of the change in market circumstances in 2024.”
He noted that international wholesale energy prices were lower and more stable in 2024 compared to the previous two years, although they remained volatile and significantly higher than pre-energy crisis levels. “The 2024 performance is in line with expectations and has enabled us to deliver a record capital investment of €2.2bn in critical energy infrastructure, while retaining the financial strength to invest more over the coming years,” Stapleton added.
ESB’s capital investment program has been a key focus as the company continues to develop and decarbonize the energy system, particularly through the integration of renewable energy. The €2.2 billion total investment included €1.4 billion in electricity networks across Ireland and Northern Ireland, €500 million in renewable generation projects, and €300 million focused on security of supply and other initiatives.
Stapleton emphasized the company’s commitment to further accelerating investment, stating, “For every euro of Profit after Tax earned by ESB last year, we invested €3 in capital investment projects.”
Looking ahead, ESB plans to significantly increase its investment in network infrastructure. Stapleton acknowledged the impact of recent extreme weather events on the electricity supply, noting that these disruptions had underscored the need for further investment to enhance network reliability. “The unprecedented extreme weather events experienced in recent months caused significant electricity supply disruption, which we acknowledge was very challenging for many of our customers,” he said.
As part of its strategy to strengthen the energy system, ESB Networks plans to more than double its investment in the network over the next five years, with a similar increase expected from NIE Networks in Northern Ireland. Stapleton highlighted that this expansion in investment is contingent on ESB maintaining profitability and a strong credit rating to support increased borrowing.
Despite the challenges, ESB’s financial and investment strategies position the company to play a crucial role in the transition to a more secure and sustainable energy future.
