Bord na Móna posts operating profit of €52.4m

PAMELA NEWENHAM

Bord na Móna recorded an operating profit of €52.4 million for the year ended March 2015, up €2.2 million or 4.3 per cent on the previous year.

The operating profit was driven up by the commencement of commercial operations at both the Mountlucas and Bruckana wind farms and increased sales of milled peat for power generation at the West Offaly and Edenderry power stations.

Earnings before interest, tax, depreciation and amortization of €98.1 million, were up 7.9 per cent on 2014.

Turnover declined €9.4 million or 2.2 per cent from €426.7 million in 2014 to €417.4 million last year.

Bord na Móna said there was reduced sales activity in the home heating sector with briquette and coal sales down due to the impact of increased carbon tax on solid fuels, increased competition from Northern Ireland suppliers and alternative products such as private turf and wood based products.

During the year, the board decided to cease the Anua business operation due to ongoing losses. Bord na Mona incurred an exceptional pre-tax charge of €4.6 million in respect of the termination of the Anua operations.

Bord na Móna chief executive Mike Quinn said the report demonstrates the significant adverse impact that items such as the carbon tax, carbon credit pricing, the private sale of timber and turf and cross border fuel trading have had on operating profit performance.

“The environment in which we operate is coming under increasing pressure due to the lack of a level playing field,” he said.

“In the medium term, we will face increased challenges in the cost effective supply of biomass to both our Powergen business and to the ESB peat stations post 2019, pay by weight in our resource recovery business, the implementation of the feedstock transformation programme and the expiry of the current long term peat supply agreements,” he added.

Net debt increased from €72.2 million at the start of the year to a closing net debt of €132.6 million an increase of €60.4 million. The group paid a dividend of €11.2 million during the year.