Why Bord na Móna is satisfied despite 50% profit drop

Confident it will achieve ambitious renewable energy targets...

Bord na Móna has announced that its net profit fell approximately 50% in the year to March, though its chair John Horgan called it a "year of solid achievement" for the State-owned company.

The fall in net profit from €35m to €17.3m was attributed to it writing down the value of two power stations in Edenderry, as well as the wind up of its Anua air and water treatment business.

Revenues at the firm actually rose 6% to €432.8m, and the company paid out a €10.1m dividend, mainly to the Government. A €500,000 slice of that was paid as part of its employee share-ownership plan.

Revenues were boosted by their renewable energy interests. Sales in its Mountlucas and Bruckanan wind farms were up €13.8m in their first full year of operation. Meanwhile its Drehid facilities' waste treatment sales climbed by €9.3m.

John Horgan said:

“This has been another year of solid achievement for Bord na Móna. The company was established in 1934 to deliver sustainable industry and employment using Ireland’s indigenous, natural resources and we continue to do so to this day.

"In recent years, we have diversified significantly away from being an exclusively peat-based company, but even as we do so, we are continuing to deliver for the state, implementing national policy in many new areas.”

Chief executive Mike Quinn pointed out that a decade ago, just 2% of its electricity was generated from renewables as compared to 48% today.

Looking ahead, Quinn said:

"By 2020, we know it will be 70% and by 2030 it will be 96%, making us the number one producer of renewable energy on the island of Ireland."