The international holding company of the ESB has reported a 66 per cent increase in pretax profits, as the company expands its overseas interests.
The accounts of ESB International Ltd, recently lodged at the Companies' Office, show pretax profits up to €18.7 million in 2004 from €11.2 million the year before.
The company acts as a holding company for ESB's international interests and also provides administration and management services to these companies. As a result, a full turnover figure is not given in the accounts, although it is believed the turnover of ESB's international operations is €375 million.
The various international companies return a dividend to ESB International each year. In 2004, this increased to €20.6 million from €13.5 million. The main factor reducing the pretax profit figure was slightly higher interest charges.
The growth of ESB's international operations is clear in the accounts. The company's current assets have increased to €116 million in 2004 from €88 million in 2003 and retained profits are up from €10.9 million to €29.9 million.
Accounts for another international ESB company, ESB International Investments Ltd, have also been lodged at the Companies' Office. These show the range of interests the company owns. There are subsidiaries, associate and joint ventures companies in Britain, Luxembourg, Spain, Northern Ireland, Malaysia and the British Virgin Islands.
A spokesman said yesterday the company in the British Virgin Islands, Americas & Caribbean Power Limited, was related to an old ESB investment project in Guyana.
ESB participated in a project in Guyana a few years ago which never became operational and the company had yet to formally dispose of its 20 per cent stake in this company. However, it is understood this may have happened since the accounting period ended.
ESB is rapidly expanding outside Ireland. This is mainly due to a decision by the company to lower its market share in Ireland. The company's chief executive, Pádraig McManus, has made it clear that he wants the company to recoup whatever revenue it loses in the Irish market from its overseas investments.
Investments in power stations often take between 10 and 15 years to pay for themselves, so the result of this strategy may not be fully seen for some time. This approach has led the ESB to concentrate on consulting projects and facility management as well as on power station investments.
