Veolia’s main Irish arm reports sharp drop in profits

The main Irish arm of environmental services group Veolia reported a sharp drop in profits last year.

Newly-filed accounts show Veolia Energy Ireland recorded a €528,000 pretax loss in 2015 compared with a €3.28 million profit a year earlier.

Revenue from continuing operations was down €1 million to €53 million, while cash flows generated from operating activities was €4.8 million, up 9 per cent on the prior year.

The group, which has more than 179,000 staff worldwide, employs more than 500 people in Ireland, over half of which are employed by Veolia Energy Ireland.

Staff costs for the subsidiary, including wages and salaries, totalled €18.2 million last year, versus €17.6 million in 2014.

Two linked subsidiaries, Veolia Energy Services Ireland and Veolia Alternative Energy Ireland, reported a pretax loss of €1.64 million, up from a €1.01 million loss a year earlier on revenue that was stable at €25 million.

Veolia, which was awarded a 15-year €450 million contract last year to operate the State’s largest biomass power plant in Killala, Co Mayo, supplies a range of water, waste and energy management services to commercial and public entities in Ireland.

The group’s Irish water division, which recently won a 20-year contract with Irish Water in January that includes an €18.4 million upgrade in waste infrastructure in Co Donegal, reported a full-year €773,000 pretax profit, down from €1.2 million in 2014.

Revenues at the unit increased from €36.6 million to €40.2 million.

Veolia Water Ireland, which employs 170 people and operates more than 20 water treatment plants, recorded staff costs of €9.1 million, up from €8.5 million a year earlier.

Separately, the group’s Irish environmental services division, which provides recovery, treatment and disposal services for hazardous wastes, recorded a €1.1 million pretax profit last year. This compared to a €1.5 million profit in 2014.

The division posted revenues of €16 million versus €13 million in the prior year.

In January, Veolia Ireland announced plans to take on 300 employees across its various businesses over the next five years as it targets double-digit annual growth.

The group is led in Ireland by former Dublin All-Ireland winning football manager Pat Gilroy.