ESB Group recorded a profit of €706 million after tax in 2024, marking a 19 percent decrease from the previous year. The decline reflects the stabilization of international wholesale electricity prices, which remained lower yet volatile compared to the peak of the energy crisis.
Record Investment in Energy Infrastructure
Despite the decline in profit, ESB invested a record €2.2 billion in critical energy infrastructure, including €400 million allocated to joint ventures. This substantial investment aligns with the company’s long-term strategy to enhance energy reliability and sustainability.
ividend Proposal and Financial Stability
ESB has proposed a dividend of €189 million for 2024. The company’s net debt stood at €6.7 billion, with total borrowings reaching €7.5 billion by year-end. Financial resilience remains a priority in supporting ongoing and future investments.
Commitment to Carbon Reduction and Renewable Energy
The company has significantly reduced the carbon intensity of its power generation, achieving a 46 percent reduction compared to 2005 levels. ESB’s generation portfolio now includes 1.8 GW of renewables, comprising wind, hydro, and solar, alongside renewable-enabling technologies such as battery storage and pumped storage facilities.
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Expanding Network Investment for Future Energy Security
Recent extreme weather events underscore the need for further investment in energy infrastructure. ESB Networks plans to more than double its investment in the network over the next five years, with NIE Networks in Northern Ireland following a similar strategy. Maintaining profitability and a strong credit rating remains crucial to sustaining this level of investment and ensuring future energy security.
Frequently Asked Questions
Why did ESB’s profit decline in 2024?
ESB’s profit fell by 19 percent to €706 million due to stabilising international wholesale electricity prices, which, while still volatile, were lower than in previous years.
How much did ESB invest in energy infrastructure in 2024?
The company invested a record €2.2 billion in critical energy infrastructure, including €400 million in joint ventures to support energy security and sustainability.
What dividend has ESB proposed for 2024?
ESB has proposed a dividend of €189 million, reflecting its continued financial stability and commitment to delivering returns despite a profit decline.
What is ESB’s current financial position?
As of the end of 2024, ESB had net debt of €6.7 billion and total borrowings of €7.5 billion, maintaining financial strength to support future investments.
How is ESB reducing its carbon footprint?
ESB has cut the carbon intensity of its power generation by 46 percent compared to 2005 levels, with 1.8 GW of renewable energy sources, including wind, hydro, and solar.
What role do renewables play in ESB’s energy strategy?
Renewables, along with enabling technologies like battery storage and pumped storage, are central to ESB’s long-term goal of reducing carbon emissions and enhancing energy security.
How does ESB plan to improve energy infrastructure?
ESB Networks aims to more than double its network investment over the next five years, with NIE Networks in Northern Ireland planning a similar expansion.
Why is maintaining profitability important for ESB?
Sustaining profitability and a strong credit rating ensures ESB can continue investing in critical energy infrastructure, supporting Ireland’s transition to a more reliable and sustainable energy system.
Conclusion
ESB Group’s 2024 financial results reflect a strategic balance between profitability and investment in critical energy infrastructure. Despite a profit decline due to stabilising electricity prices, record capital investment underscores ESB’s commitment to energy security, sustainability, and network reliability. With a focus on expanding renewable energy and strengthening infrastructure, the company remains well-positioned to meet future energy demands while maintaining financial stability and supporting Ireland’s carbon reduction goals.
