Coillte, the semi-state forestry company, has reported record profits for its 2018 financial year. Announcing annual results this week, Coillte said earnings (EBITDA) in 2018 increased by more than a third (+35%) to a record €115m.

The company reported operating profits of €71.5m for 2018, which was up almost 50% on the previous year. Operating profit margins in Coillte strengthened from 16% in 2017 close to 22% last year. Turnover increased by 11% in 2018 to just over €330m as a result of strong growth in sales from Coillte’s Medite/Smartply business.

During the year, Coillte slashed its net debt from €140m in 2017 to just over €14m by year end 2018

Operating cashflows doubled during the year to €60m

During the year, Coillte slashed its net debt from €140m in 2017 to just over €14m by year end 2018 after completing the sale of its majority stake in operating a number of wind farms for a total of €127m.

These disposals included selling its 50% stake in Cloosh Valley Wind Farm and Raheenleagh Power, as well as a 12.5% stake in in Sliabh Bawn Wind Holdings. In addition, Coillte also sold its 50% stake in Castlepook Power to ESB. The total profit from these sales was just under €93m.

For 2018, Coillte paid a dividend of €15m to its sole shareholder, the Irish Government. This is up from the €8m dividend paid in 2017.

Despite the challenges created by Brexit uncertainty, we are confident that continued strong execution of our strategy will ensure the business continues to prosper

Fergal Leamy, chief executive at Coillte, described 2018 as a “significant year of progress” for the forestry company.

“2018 was a very significant year of progress as we implemented the fourth year of our ambitious transformation strategy that has positioned us as one of the best forestry and land solutions companies in Europe. Despite the challenges created by Brexit uncertainty, we are confident that continued strong execution of our strategy will ensure the business continues to prosper,” he said.

Leamy will step down as Coillte CEO in June this year having overseen significant change in the semi-state company throughout his four-year term. Gerry Britchfield has taken on the role as acting chief executive at Coillte since April.