National: ESB profits jumped to over €800 million for 2023 amid record high bills

Operating profit rose to €1.1bn in that time, up €274m from 2022.

The energy company said this increase was driven by its regulated networks business, as well its operations in Great Britain, which accounted for 23pc of profits.

The group’s generating and trading business recorded an operating profit of €730m in 2023.

The news comes following years of rising energy costs as home-owners grappled with the cost of living crisis. 

A study in 2023 showed that prices paid by consumers in Ireland are the most expensive in all of Europe at over 70% above average (€0.47 per kWh compared to an EU average of just €0.26).

Commenting on the ESB results, Paul Stapleton, ESB’s Chief Financial Officer said: “While the extraordinary volatility experienced in global energy markets in 2022 eased in 2023, wholesale prices were still unpredictable and significantly higher than the levels seen prior to the energy crisis. These market conditions continued to influence ESB’s financial performance in 2023. While Electric Ireland has decreased prices in recent months, ESB is very mindful that high energy prices continue to pose challenges for the customers we serve.”

“ESB has reported a strong financial performance for the Group in 2023. This underpins a second consecutive year of record levels of capital investment by ESB in energy infrastructure. This investment is critical for the economy and for Ireland’s transition to a net zero energy system. The funding of our capital expenditure programme – forecasted at over €11 bn over the next five years – will require continued strong financial performance and further profit growth”.

Capital expenditure by ESB in 2023 increased by €334m to €1,729m (2022: €1,395m) bringing to €6.7bn the total capital investment over the past five years.

Profit after tax increased by €219m to €868m (2022: €649m before exceptional items), while Operating profit (before interest and tax) increased by €274m to €1,121m (2022: €847m).  The growth in Group profits reflects increased earnings from regulated networks businesses and a growing contribution from our business activities in Great Britain which now account for 23% of Group profits.

The Group contributed over €2.7bn to the Irish economy during the year in the form of payroll, taxes, dividends and purchases from domestic suppliers. 

ESB continued to make progress towards Net Zero carbon emissions by 2040 - ESB’s carbon emissions from electricity generation reduced by almost 30% in 2023 compared with the previous year. In addition, the carbon intensity of electricity generation (at 370 gCO2/kWh) reduced by more than 11% on 2022 levels and is nearly half that of 2005. 

ESB’s record level of capital expenditure in 2023 at €1.7bn represents a 24% increase on 2022. Approximately 70% of this capital expenditure relates to investment in electricity network infrastructure in line with agreed regulatory programmes. This investment will enable economic growth, enhance network resilience and help to progress Government Climate Action targets. Over €400m of this capital expenditure was on electricity generation projects, growing ESB’s renewable generation base and enhancing system flexibility and security of supply.

ESB is recommending a dividend of €220m, bringing dividends to over €1.4bn over the last 10 years.  This is consistent with our policy of paying dividends equivalent to 40% of profits over time.   In addition, in January 2024, ESB paid €76m to the Irish State under the Irish Government’s scheme to cap the market revenues of certain electricity generators from December 2022 to June 2023. This amount was provided for in the financial statements as at 31 December 2023.