Viridian reports profits up 11%

Viridian Group has reported operating profits up by 11% to £132.4 million, rising from £119.1 million in 2005.

The parent company of NIE, Viridian attributed much of its profits rise to the increase in business from the Energia subsidiary that supplies energy to the Republic of Ireland.

Energia, the largest independent supplier in RoI, reported it had increased sales from 3.1TWh to 3.9TWh.

Viridian Chief Executive Patrick Haren, said that the group has delivered a "strong set of results."

He said that NIE’s businesses had "each delivered strong performances. NIE’s focus remains on cost reduction and efficiency while also ensuring quality of service to our customers."

Revenue from Viridian's Power & Energy division increased from £272.3 million to £381.1 million, attributed primarily to volume growth in the RoI, higher prices associated with rising fuel costs and sales to gas customers. However, operating profit was squeezed slightly and was down from £25.0 million in 2005 to £24.1million.

Viridian reported that the construction programme for Huntstown 2 is on track for commissioning in autumn 2007 with capital expenditure of €27 million as civil engineering works at the site proceed with the main equipment due to arrive on site during summer 2006.

Since 1 April 2005, suppliers in Northern Ireland have been required to source a proportion of their supply from renewable generation. Energia currently has 33MW of windfarm capacity under contract and is aiming to negotiate further contracts with windfarm developers.

However, Viridian noted that windfarm development in Northern Ireland had been slower than expected due to planning delays.

(SP/KMcA)