ESB Group has reported a loss after interest and tax of €66 million for the six months to the end of June. The company stated that this loss was due to the period of unprecedented global turmoil brought about by the continuing challenge of the COVID-19 pandemic. 

ESB delivered an operating profit before exceptional items of €249 million, in the first six months of 2020. The 15% decrease of €45 million compared to the same period in 2019 is primarily due to the impact of COVID-19 restrictions and the associated reduction in electricity demand.   

In the first half of 2020, the company had an exceptional, non-cash impairment charge of €177 million on its Carrington gas-fired power plant located in Manchester. The operating environment for thermal generation plants has changed significantly in recent years due to competition, regulation and decarbonisation which gave rise to ESB, in line with other utilities across Europe, impairing some of its generation assets. 

This charge represents about 1% of ESB’s total asset base at the end of June 2020 and has resulted in a loss after interest and tax of €66 million.

Commenting on the results, ESB’s Chief Financial Officer, Pat Fenlon said: “In the context of an extremely challenging operating environment brought about by the global COVID-19 pandemic, ESB delivered a satisfactory set of financial results.”

He added: “While electricity demand in Ireland fell by about 15% at the height of the lockdown restrictions brought about by the response to COVID-19, we have seen demand recover and since July is in line with 2019 comparative levels.”

Source: www.businessworld.ie