Bord na Móna announces record profits

Bord na Móna today announced record profits for year ended March 2014, with the annual report launched by the company in Dublin.

The annual report, launched this morning by the company in Dublin, highlights excellent performances across the Group, with the Powergen, Feedstock and Resource Recovery businesses underpinning the excellent performance of the company and demonstrating the strength of the Group’s balanced business portfolio.

Speaking this afternoon at the launch of the annual report, Gabriel D’Arcy, CEO, Bord na Móna said: “I am very pleased to report these strong results and record profits as we celebrate our 80th year in business. Operating Profit more than doubled (+114%) whilst the company reported that Profit After Tax was up 263%. These excellent figures are a product of the company’s commitment to sustainable business operations, related diversification and the flexibility of our employees that allowed us to increase profits whilst operating in a challenging business environment. They are particularly encouraging as the Group continues to expand into other more sustainable and non-peat related business areas.”

A significant focus during the year was the continued expansion of the wind energy portfolio, with Mountlucas and Bruckana wind farm investments of €175 million in total nearing completion and expected to be generating revenue from the second half of this year. 2014 also saw the Drehid Landfill-Gas Utilisation Plant being commissioned in the Resource Recovery business, with capacity to provide energy for 8,500 homes across the Leinster region. Edenderry Power Station ran as a 25% co-fired station (peat/biomass) for the year further contributing to Ireland meeting its RES-E targets. Solid fuel sales were also relatively strong, despite a negative impact resulting from the introduction of the Carbon Tax and a relatively mild winter.

Resource Recovery posted much improved results, reaffirming the strength of the business as it continues to emerge from an extremely challenging operating environment. Sustained efforts to reduce operating costs together with the investment in technology in recent years position this business well for further expansion opportunities.

The Annual Report Shows:

  • Turnover of €426.8 million increased marginally on 2013
  • Operating profit increased to €50.3 million up 114%
  • Earnings before interest, tax, depreciation and amortization (“EBITDA”) of €90.9 million was also strong up 48% on the previous year
  • Profit After Tax for the financial year was up 263% to €33.5 million
  • Resource Recovery Business – Turnover grew €8.9 million in the year to a record €80.3 million. This was driven by an increase in customer numbers and increased volumes into the company’s waste technology facility in Drehid, Co. Kildare.
  • Powergen Business – Turnover increased marginally, however significant improvement in financial performance is anticipated in the current financial year, with both Mountlucas and Bruckana Windfarms coming on-stream.
  • Feedstock Business – A tremendous year in 2014. An excellent harvest of good quality peat, coupled with the lower costs of processing, contributed quite significantly to the particularly strong performance.
  • Consumer and Professional Business – A very robust performance over the past year. Although the reported figures show a decrease in turnover, the successful disposal of Suttons Oil makes up the majority of the shortfall.

Expressing his satisfaction with the strong performance, Mr John Horgan, Chairman, Bord na Móna, said: “In the coming year, Bord na Móna will be pressing ahead with a number of significant projects as part of our investment programme, with Mountlucas and Bruckana coming on-stream and the development of Oweninny Wind Farm (a joint venture with the ESB) also progressing. These significant infrastructural projects, combined with our drive for cost effective operations and continued focus on competitiveness and innovation across the Group, are part of our on-going sustainable business strategy. The results released today vindicate the company’s strategy to build a sustainable future for Bord na Móna, its shareholders, employees and the communities in which we operate and serve.”