Directors at Gas Networks Ireland have approved a €62.1 million dividend payout to the exchequer after pre-tax profits last year increased by 43% to €165.2 million.
The 2024 annual report for Gas Networks Ireland shows that the utility operator achieved the increase in profits as revenues rose by 14% from €527 million to €599.5 million.
Annual dividends at Gas Networks are based on 45% of previous year’s profits and the €62.1 million dividend for 2025 approved by the board in March follows a €44 million dividend paid out last year.
The report states that over the past five years prior to this year “we have distributed over €200 million in dividends to our shareholder, the Irish Government”.
The annual report states that revenues “were driven principally by higher transportation tariffs and marginally higher capacity demand”.
Gas Networks Ireland own, build, maintain and operate the natural gas network in Ireland and its principal activity is the transportation of natural gas to over 720,000 business and residential gas customers regardless of which natural gas supply company they choose.
The utility company recorded earnings before interest, depreciation tax and amortisation (EBIDTA) of €323 million.
The company’s non-cash depreciation and amortisation costs totalled €154 million. The utility recorded a post tax profit of €138m after recording a €26.9m corporation charge.
The directors state that the Gas Network Ireland’s operating costs increased by €22 million to €276 million last year and “this was primarily due to incremental cyber and energy security related costs, incremental customer related pipeline diversion costs, increase in commercial rates and general inflationary cost pressures”.
The utility’s rates bill for 2024 totalled €31 million.
In his report, Chief Financial Officer with Gas Networks Ireland, Ronan Galwey said that “the solid performance for the year follows lower profitability outcomes in 2021 and 2022 driven principally by higher wholesale gas prices and customer cost mitigation measures”.
Now acting CEO, Mr Galwey said: “The financial outcome for the year and our strong financial metrics will enable Gas Networks Ireland to continue to invest in critical infrastructure on our gas network to strengthen energy security and will facilitate the delivery of a decarbonized gas network in support of our climate ambitions.”
Numbers employed increased from 813 to 848 and staff costs increased from €67.8 million to €74.1 million.
The 2024 pay package for former CEO Cathal Marley last year totalled €266,000 made up of basic salary of €225,000, €30,000 in pension contributions and €11,000 in other short term employment benefits. Mr Marley is now ceo at Eirgrid.
The utility firm had 12 employees earning over €200,000 last year with 42 earning between €150,000 and €200,000 while 189 earned between €100,000 and €150,000.
Reporting by Gordon Deegan
