Bord na Móna’s has reported a 11 per cent increase in turnover to a record €426.1 million for the financial year ended in March 2013.
Figures published by the company today show a return to profit and an increase in cash flow for the group, who say that the results highlight the importance of a balanced business portfolio which includes power generation, resource recovery and retail products.
Operating profits after exceptional items increased to €23.5 million, up from a loss of €3.7 million in 2012, while operating cash flow has increased from €42.3 million to €108.5 million during the year.
Overall profits, after exceptional items, for the group were €9.2 million compared to a loss of €16 million in 2012.
The company said that the increase in turnover was reflective of the prolonged cold winter weather and the positive impact this had on sales of fuel. However, the bump in sales has also lead to a reduction in the stocks of solid fuel products, including peat briquettes and coal.
Earnings before interest, tax, depreciation and amortization (EBITDA) for the period were €61.2 million.
Bord na Móna chief executive Gabriel D’Arcy said that the results owe a great deal to the resilience and diverse strengths of the company and the implementation of cost reduction measures. “These results are particularly encouraging as the group continues to expand to other more sustainable and non-peat related business areas,” he said.
The group’s chairman, John Horgan, said Bord na Móna would be progressing a number of significant projects in the coming year as part of an investment programme in wind and other renewable energy sources.
“We will also continue to engage with other stakeholders in relation to the provision of a sustainable water source for the Eastern Region,” he said.
“These significant infrastructural projects, combined with our drive for effective operations across the group are part of our ongoing sustainable business strategy”.
During the year the group expanded its wind energy portfolio at Oweninny in Co Mayo as well as at Mount Lucas and Bruckana in the midlands.
During the accounting period exceptional items which affected the company’s profitability included a €23 million impairment charge in relation to the the group’s waste management business.
Exceptional costs of €23.5 million were also incurred as a result of the poor harvest in 2012, which was the lowest in the company’s history, representing just 37 per cent of the harvest target.
The group said they faced exceptional challenges in the feedstock business because of the 2012 summer, the wettest recorded in the company’s history, but added that in 2013 the harvest was 110 per cent of its target with potentially two months of operations remaining. Source: The Irish Times