In a climate of plummeting turnover, Bord na Móna’s profits were shored up by the proceeds from asset sales. Despite a 30% reduction in turnover, down to €279 million, following the shut down of two firms, the state-run company remained buoyant.
The 12 months leading up to the 27th of March saw the corporation’s pre-tax profits nosedive slightly to €113 million, compared to €116 million in the previous fiscal year, as stated in Wednesday’s reports. In the same frame, the turnover dwindled to €279 million, underperforming the previous €395 million.
According to Bord na Móna’s yearly disclosure, earnings from renewable energy slumped by nearly €45 million to a total of €160.9 million. The report further unraveled that the company’s overheads went down following the discontinuation of its fertiliser operation in 2022 and the Derrinlough, Co Offaly peat briquette factory in 2023, shaving off a cumulative €48 million off turnover.
The closure of these factories was a direct result of the company’s shift from peat extraction into fresh sectors, inclusive of renewable energy.
Bord na Móna’s profit margin benefited from a €57.1 million yield from a coalition formed with SSE Renewables in March, and another €7.3 million accrued from the divestment of its half-share in electricity trading firm Viotas to the said firm’s management crew.
Consequently, the operating surplus surged by 12% to a record-breaking €106.7 million, as stated by the chief executive, Tom Donnellan, for the fiscal year concluded in March.
The state-run firm announced a joint commitment with SSE Renewables in March to pump approximately €1 billion into the construction of wind turbines with the capacity to feed over 450,000 households.
SSE Renewables, a subsidiary of London’s publicly traded SSE, owns the Irish power provision firm, Airtricity. This contributed the €57.1 million as a purchase term for Bord na Móna’s 50% ownership of the wind farms under construction.
During the previous fiscal year, the collective invested €164 million towards creating novel energy enterprises. Out of this, €133 million was utilised for initiatives solely owned by Bord na Móna, while €31 million was channelled towards collaborative endeavours. This expenditure brought forth the inauguration, together with ESB, of Oweninny wind farm phase two in County Mayo which has the potential to cater to approximately 140,000 households.
In addition to this, Bord na Móna is also making headway on its premier solar farm located at Timahoe North in County Kildare, a separate venture with ESB in the pipeline. In County Offaly, the corporation is constructing a wind farm at Derrinlough and batteries for the storage of renewable energy at Cloncreen.
Earlier in this year, it was revealed that Amazon Web Services, the data storage division of the digital behemoth, inked a deal to purchase power from Derrinlough and will become the initial occupant of Bord na Móna’s Eco Energy Park in County Offaly.
Going forward, Bord na Móna’s strategy includes enticing industries to this park by offering them access to renewable energy exclusively made at the location.