Average pay for 7,870 staff employed by state-owned utility company ESB was €74,000 in 2021, according to the company’s annual report.
In addition, each staff member enjoyed an average pension payment benefit of €6,000 from their employer.
The group’s turnover increased to €5.4bn from €3.7bn the year before and operating profit was €770m. The profit margin of 14.3% in 2021 widened from the 9.9% margin enjoyed in 2020.
After finance costs and impairments, ESB’s pre-tax profit was €290m.
Net cash inflow from operating activities was €1,560m, of which €80m was paid to the state in dividends. For the current year, the company has promised to pay its shareholder €126m.
In Association with
ESB’s total liabilities expanded to €11.9bn in December 2021 from €9.9bn a year earlier. The company said that investment in electricity infrastructure was €1.2bn in 2021.
Windfarm turbulence
The ESB annual report discloses that its Neart na Gaoithe offshore windfarm in Scotland, a joint venture with EDF, has run into unforeseen difficulties.
The company says that significant challenges have been experienced in the delivery of the foundations package. As a result, commercial operations will be delayed and additional construction costs are expected to be incurred.
An impairment charge of €154m has been booked in the 2021 accounts, and ESB notes that the group also has further commitments of €250m.
“Any material adverse change in the construction costs or timing of the Commercial Operation Date would result in a reduction in the recoverable amount and an increase in the impairment charge,” according to the company.
Chairman Terence O’Rourke commented: “We remain confident that the project will deliver long term value for ESB and contribute significantly to our offshore wind ambitions.”
He added that 2021 was characterised by high commodity and carbon prices and unprecedented volatility in energy markets, against a backdrop of electricity system tightness.
“Unfortunately, the impact has been felt in rising energy bills for our customers,” he said. “Electric Ireland, our retail business, raised standard ROI residential electricity tariffs twice during the year by a cumulative 19%.”
The chairman added that volatility in energy markets and the impact of the energy price cap has also adversely impacted ESB’s activity in Britain.
“Profound impacts have been felt by the industry more generally in GB, resulting in successive supplier exits. Ofgem, the energy regulator, is currently consulting on changes to the calculation of the energy price cap to ensure it appropriately reflects the costs, risks and uncertainties facing suppliers. The outcome will be closely monitored by ESB.”
Images: Getty/Photocall Ireland
