Business

Coolkeeragh pays £30m in dividends but still increases profits

ESB-owned Derry power plant sees cash reserves depleted from £344m to £16m

Coolkeeragh power station on the outskirts of Derry is among the `development and operation of energy production plants' cited in the report. Picture by Margaret McLaughlin
Coolkeeragh power station on the outskirts of Derry increased turnover to £320m last year and saw retained profit rise to £12m. Picture: Margaret McLaughlin
By Gary McDonald

The Coolkeeragh gas-fired power plant in Derry returned more than £12 million in bottom-line profits in 2023 to its owners, the Republic’s state-owned energy group ESB.

The 400 megawatts combined cycle gas turbine plant supplies electricity into the all-Ireland market, and it is among a number of assets in the north owned by ESB, including six wind farms.

That retained profit was 20% more than the £10m banked in 2022, while pre-tax profits at the company soared by 20% to just shy of £16m.

It attributed the hike to gains from contracts to provide energy to electricity supply companies within the ESB group.

“These contracts are deemed to include an embedded derivative financial instrument that is measured at fair value,” the directors said in a statement with the accounts.

“Commercial contract gains were somewhat offset by reduced plant running and availability in the year.”

The accounts also confirmed that Coolkeeragh ESB Ltd paid a £30m dividend to shareholders (against zero the year before).

The company’s cash reserves were shown to have been severely depleted over the year - down from £344m to just £16m.

This all came as ESB’s supply firm, Electric Ireland, withdrew from the residential market in the north in May following a strategic review of the business, leaving 53,000 customers (or 6% of the region’s domestic market) to find an alternative supplier.

Overall, Coolkeeragh/ESB increased sales by 23% last year, with turnover rising to £320m from £260m previously.

The accounts show that the company has no employees, while its four key directors are employees of - and are paid by - ESB.

ESB's Coolkeeragh power station at the mouth of the River Foyle in Derry. Image: Google
ESB's Coolkeeragh power station at the mouth of the River Foyle in Derry

The directors said the conflicts in Ukraine and the Middle East had created significant uncertainty in global markets, particularly increased volatility in energy and commodity markets, increases in price inflation and potential supply disruption which may have direct and indirect impacts on individuals and businesses.

They added: “We will continue to monitor this evolving situation and consider any impacts on the company but do not believe that the crisis will impact on our ability to continue as a going concern.”