Bord Gáis reports 10% fall in pretax profits

State energy company Bord Gáis has reported a 10 per cent fall in pretax profits to €151 million for 2008.

The decline in pretax profits was down to a combination of spending on its expansion, sales costs, increased regulatory requirements and a “share-based payment associated with the introduction of an Employee Share Ownership scheme in 2008”.

Revenues rose 14 per cent to €1.39 billion last year with gas sales accounting for almost two-thirds of turnover.

Having recently entered the domestic electricity market Bord Gáis said it has attracted 100,000 customers, roughly 5 per cent of the market, and that electricity sales increased by 18 per cent to €282 million last year.

The company will pay a dividend of €28 million to the State and at the end of December it had net debts of €1.21 billion.

John Mullins, Bord Gáis chief executive, said he was pleased with the response to the company’s launch into the residential electricity market.

Gas prices for residential and business customers would fall 12 per cent from May 1st. Prices for the autumn will be further reviewed by the Commission for Energy Regulation.

“Based on current trends in wholesale gas costs, the company hopes to be in a position to recommend a further decrease in gas prices in October,” Bord Gáis said in a statement.