This is a subscriber-only article
Net profits at Bord na Móna fell from €35m to €17m for the year ended March 2016 as it wrote down the value of two power stations in Edenderry, Co Offaly.
However, the company recorded a turnover of €433m between April 2015 and April 2016, according to its annual report published this Monday 25 July.
This is a €26.1m, or 6%, increase on the turnover recorded in the previous year.
The company also recorded an operating profit of €51m, a slight decrease on the €52.4m recorded last year.
Key sales variances, which led to the 6% turnover increase, include a €13.8m increase in the sales of the Mountlucas and Bruckana wind farms, an aggregate €4.5m increase in sales of peat to the Lough Ree Power and West Offaly Power stations and a €6.8m increase in compost sales for gardening in both professional and retail sectors.
Comment
Expressing his satisfaction with the results, John Horgan, chair of Bord na Móna, said: “This has been another year of solid achievement for Bord na Móna. The company was established in 1934 to deliver sustainable industry and employment using Ireland’s indigenous, natural resources and we continue to do so to this day. In recent years, we have diversified significantly away from being an exclusively peat-based company, but even as we do so, we are continuing to deliver for the state, implementing national policy in many new areas.”
Mike Quinn, CEO of Bord na Móna, said the figures demonstrate sound, solid achievement.
"Turnover, at €432.8m, was up 6% on the previous year," he commented.
"Operating profit margin also remained strong this year, despite some considerable challenges including Edenderry power station exiting the Public Service Obligation, a period of very low electricity prices and a mild winter which had an adverse impact on fuel sales."
The drop in coal and briquette sales amounted to €7.7m over the last year, according to the report.
Renewables
Ten years ago, just 2% of the electricity Bord na Móna produced was generated from renewables but, today, the company is at 48%.
Given the company's pipeline of wind, biomass and other renewable energy projects, Quinn said: "By 2020, we know it will be 70% and by 2030 it will be 96%, making us the number one producer of renewable energy on the island of Ireland."
In October last year, Bord na Móna announced it is to stop harvesting energy peat by 2030 as part of this move towards more sustainable energy practices.
SHARING OPTIONS: