The company delivered a solid business performance and paid a dividend of €23.8 million to the Exchequer for this period, bringing the total dividends paid to the Exchequer since the inception of Bord Gáis in 1976 to €854 million.
Despite the challenging domestic environment and sustained increases in wholesale prices, the company performed well in 2012. Total revenue grew by 1 per cent to €1,625 million and EBITDA increased by 11 per cent or €37 million to €380 million. Profit before income tax increased 29 per cent to €121 million.
Bord Gáis also announced that it has secured a €90 million loan extension from the European Investment Bank (EIB), bringing the total EIB support for its wind farm programme to €245 million. The funding will be used specifically to support the largest single wind farm construction in Ireland at Knockacummer/Glentane in Co. Cork, delivering 87.5 MW and creating up to 80 jobs.
The financial strength and strategic direction of the company received a vote of confidence from lenders in 2012. The total amount of capital raised by the company through financing initiatives is c. €850 million. Bord Gáis successfully placed a €500 million bond with a 5 year maturity in November 2012, having received total orders of €6.5 billion in just one hour. The company’s last bond issue was in 2009 and despite the turbulent economic environment in the interim it has achieved the same credit spread and lower coupon with the new bond. In the same month, Bord Gáis also secured €155 million of funding from the EIB to support the construction and operation of six onshore wind farms with a total generational capacity of 141 MW.
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Bord Gáis is a key player in the Irish wind market, generating 15 per cent of the installed wind capacity in Ireland at present. The company has a significant wind farm development pipeline and major progress was made in 2012 in obtaining the consents for these projects. At the end of December 2012, the company had 174 MW of wind projects in construction, 100 MW to be brought to financial close within 24 months and a further 350 MW of medium to long-term wind development.
Rose Hynes, Chairman of Bord Gáis Éireann said: "The Company delivered a robust performance in 2012 despite the ongoing difficulties in the domestic economy, and the continued increases in international wholesale prices. Ensuring that we meet our obligations to our customers, in terms of the standard of customer service and by helping those customers who are in arrears, continues to be our main priorities. In 2012, we helped nearly 120,000 customers to manage their bills.
"Bord Gáis continues to make a substantial contribution to the Irish economy and will pay a dividend of €23.8 million to the Exchequer for 2012, bringing the total dividends paid to €854 million. Looking forward, the Company is embarking on a period of significant change. Managing the proposed sale of Bord Gáis Energy and the establishment of Irish Water, change programmes of complexity and scale, are significant undertakings in addition to delivering ongoing commercial objectives. However, I am confident Bord Gáis will deliver against all of these objectives successfully."
(CD/H)
