Sustainability Report 2020

About us

Economic

Natural gas is of key strategic importance to the Irish economy, representing 31 percent of Ireland’s primary energy mix and generating 52 percent of Ireland’s electricity.

Revenue €m

2017

473

2018

487

2019

470

2020

447

Capex €m

2017

147

2018

143

2019

110

2020

112

Dividends €m

2017

148

2018

144

2019

139

2020

70

Summary Income Statement

2020

2019

€m

€m

Revenue

447

470

Operating costs

(182)

(186)

EBITDA

265

284

Depreciation and amortisation

(138)

(139)

Finance costs

(17)

(19)

Profit before income tax

111

127

Distributions paid to shareholder

70

139

Revenue

Revenue was €447m for the year to December 31st 2020, decreasing by €23m compared to 2019. This decrease was primarily driven by over-recoveries of revenue in prior years and lower pass-through revenues. Lower gas demand also contributed to the decrease in revenues. This was primarily due to high wind levels in the first quarter of 2020, and to a lesser extent due to COVID-19 related demand factors, as a result of the reduction in economic activities.

Operating Costs

Operating costs of €182m are €4m lower than 2019. This is primarily due to lower gas commodity costs to run the gas infrastructure.

Depreciation

Depreciation and amortisation of €138m is broadly aligned with prior year.

Profit before Income Tax

Profit before tax decreased by €16m to €111m for 2020 due to:

  • Lower EBITDA of €19m,
  • Partly offset by lower depreciation charges of €1m, and
  • Lower finance costs of €2m, primarily due to lower financing costs and the reduction in debt during 2020.

Dividends

A dividend of €70m was paid in 2020, €47m relating to the annual dividend and a special dividend of €23m relating to the sale of the Bord Gáis Energy business. The annual dividend is based on 45% of Ervia’s profit before certain exceptional items.

Summary Balance Sheet

2020

2019

€m

€m

Infrastructure assets

2,507

2,550

Other assets

204

223

Total assets

2,711

2,772

Borrowings and other debt

(1,138)

(1,190)

Other liabilities

(466)

(518)

Total liabilities

(1,604)

(1,708)

Net assets

1,107

1,064

Net debt

(1,037)

(1,074)