Life Sciences and Energy

Bord na Móna announces record profits for 2014

By Business & Finance
21 July 2014

Bord na Móna today announced record profits for year ended March 2014. 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 €175m 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 €426.8m increased marginally on 2013
  • Operating profit increased to €50.3m up 114%
  • Earnings before interest, tax, depreciation and amortization (EBITDA) of €90.9m was also strong up 48% on the previous year
  • Profit after tax for the financial year was up 263% to €33.5m
  • 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.