A strong performance from its Huntstown power plant helped Viridian, the electricity company, to increase operating profits by more than 30 per cent in the six months to September 30th.
Operating profits were up from £50 million sterling (€71 million) to £66.7 million (€95 million). Turnover was up 11 per cent from £368 million to £412 million.
Pre-tax profits were up from £53.8 million to £54.9 million. However, the 2003 pre-tax figures were boosted by a once-off exceptional gain from the sale of the Moyle Interconnector.
A company statement said a major contributor to the improved figures was the performance of Viridian Power and Energy, a subsidiary consisting of Huntstown and its supply arm, Energia Ltd.
Operating profits at this subsidiary grew from £8.7 million to £16.3 million during the six months to the end of September.
The company said this division represented a "natural avenue for growth". Its turnover increased in the period - from £98.8 million to £121 million. Viridian said profits and turnover were rising because of higher availability and output from Huntstown and volume growth in the Republic and Northern Ireland. It said some favourable gas hedging contracts also helped the figures.
The company said the contribution in the first half from this business was "particularly strong". But it warned that this performance might not be repeated in the second half because of higher winter gas prices in the Republic.
It also said a planned outage (this is when a station goes out of commission for maintenance) at Huntstown was scheduled to start in March.
Energia operates in the competitive markets in the Republic and Northern Ireland. The company said both jurisdictions were moving to the next stage of market opening in 2005 when the small and medium enterprise and the domestic markets would be liberalised.
"Looking further ahead, we are encouraged by the commitment shown by the regulators in both Northern Ireland and the Republic to the development of an all-Ireland electricity market," said a statement.
A few months ago, the company announced plans to build a second power station at the Huntstown site. The combined cycle gas turbine plant will be capable of producing 400 megawatts. The company believes strong electricity demand in the Republic justifies the building of the new station - likely to cost between €200 and €250 million. Two other companies are also building new power stations at present: Limerick-based Aughinish Alumina and Tynagh Energy in Galway.
Viridian's chairman, Mr Philip Rogerson, is stepping down after six years. A replacement is expected to be appointed in the new year.
