Ervia today publishes its Annual Report for 2014, the first full year of operations for the multi-utility company responsible for Gas Networks Ireland and Irish Water. 2014 was a transformational year for Ervia involving significant restructuring and the establishment of a new group structure.
Ervia’s Financial Statements for 2014 show a steady operating performance for the 12 months ended December 31st 2014. Revenue was in line with 2013 at €506m, whilst EBITDA was slightly lower at €337m, reflecting increased operating and maintenance costs incurred during the year.
Ervia’s financial results largely reflect the performance of its subsidiary Gas Networks Ireland for 2014. Irish Water’s full Financial Statements are not consolidated in the report due to accounting standards but financial highlights are available in the report and are summarised in this press release.
- Structure transformed under the Ervia brand with two operating utilities: Gas Networks Ireland and Irish Water
- Created new Group Centre, Shared Services and Major Projects divisions to drive efficiencies across the entire group
- Revised governance structure put in place for Ervia, with a single Unitary Board to oversee the new organisation
- Steady revenue of €506m for the year, against a positive economic backdrop that is seeing confidence return, and anticipated expansion of gas usage by major customers
- Marginally lower EBITDA at €337m, primarily due to increased rates charges and higher network maintenance costs
- €189m dividend declared to the Exchequer including initial proceeds from the completed sale of Bord Gáis Energy in June 2014, for an enterprise value of €1.12bn
Gas Network Ireland Highlights
- €65.5m investment and maintenance programme completed on time and on budget
- €34m in funding approved to twin a 50km on-shore pipeline between Ireland and Scotland, ensure security of Ireland’s gas supply
- Successfully rebranded to Gas Networks Ireland from Bord Gáis Networks
Irish Water Highlights
- Total capital investment of €548m including over 300 water upgrade projects and a nationwide meter installation programme
- €400m commercial funding raised at December 31st 2014, with a further €350m agreed with Irish and international banks in the first three months of 2015
- Total Revenue of €687m and an EBITDA loss of €107m due to Irish Water assuming responsibility for all water-related operations and costs from 31 Local Authorities, and in advance of the start of domestic billing in 2015
Commenting on the publication of the Annual Report and Financial Statements, Ervia Chief Executive Michael McNicholas said:
“2014 was a transformational year for Ervia during which the organisation made significant progress evolving from an energy company to a multi-utility infrastructure company. Gas Networks Ireland successfully completed all planned work programmes while continuing to operate the network to the highest safety standards and delivering excellent service to our customers.
The fact is Ireland’s water and waste water services are not fit for purpose, half of our clean drinking water is being lost through leaks, 44 towns have no wastewater treatment and the water supply to almost 1 million people is at risk of failure. Irish Water has assumed responsibility for the country’s water and waste water infrastructure and we are building a modern utility to address these challenges.
The company is focused on becoming a consumer led utility and earning the trust of its customers and the general public. While the scale of the change program and investment required is significant, Ervia and Irish Water are 100% committed to delivering on the mission to upgrade the country’s ageing water network so that it is fit to support a modern and growing Irish economy.”