Dividend of €62m approved at Gas Networks Ireland
Directors at Gas Networks Ireland have approved a €62.1 million dividend payment to the exchequer after pretax profits last year increased by 43 per cent 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 per cent from €527 million to €599.5 million.
Annual dividends at Gas Networks Ireland are based on 45 per cent of the previous year's profits. A dividend of €44 million was paid out last year.
The report said that in the previous five years before this year 'we have distributed over €200 million in dividends to our shareholder, the Irish Government'.
READ MORE
The annual report said 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 (Ebitda) of €323 million.
The company's non-cash depreciation and amortisation costs totalled €154 million. The utility recorded a post tax profit of €138 million after recording a €26.9 million corporation charge.
Ina note with the accounts the directors said that 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 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 chief executive, 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 decarbonised 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 chief executive 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 chief executive 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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Times
2 hours ago
- Irish Times
Bewley's seeks Grafton St rent reduction from Johnny Ronan company
Bewley's Cafe and a company owned by property developer Johnny Ronan have gone to the High Court in a row over €747,000 per-year rent for the Grafton Street outlet. Mr Ronan's RGRE Grafton Limited has said the rent should actually be €1 million, while a valuer called by the famous coffee company said it should be €518,000. The High Court heard that prior to October last year, Bewley's had been paying €1.46 million for the same premises but that figure was reduced following a rental valuation by the Circuit Court. The High Court appeal was taken by Bewley's Café Grafton Street Ltd (BCGSL) through Beauchamps solicitors, led by Simon Murphy, against the rent granted to RGRE Grafton Limited, which owns the building located at 78-79 Grafton Street, Dublin 2. READ MORE RGRE Grafton has cross-appealed the decision. The difference between the two sides' figures over a five-year rental period amounts to over €2.5 million. The case centres on the methods behind the valuations of both sides. The court has been told that BCGSL held the lease on the building from 1987 for 35 years, a deal that expired in August 2022. BCGSL then received a new tenancy under Part II of the Landlord and Tenant (Amendment) Act 1980. In October, the cafe had its annual rent halved following a ruling by Judge Jennifer O'Brien, who said it should have to pay a rent of more than €738,000 per year. That figure was later adjusted to €747,000 – still a 50 per cent drop from the previous €1.46 million being paid. The Circuit Court found that this fairly represented what a willing tenant would pay and a willing landlord would take for the premises as of August 2022 over a five-year lease term and that BCGSL was entitled to almost €1 million for rent paid since the expiry of the previous lease. Both sides are appealing the decision of the Circuit Court. Fergus Crosse, an expert valuer retained by BCGSL, told the High Court that improvements to the Bewley's building made by BCGSL also meant that the gross rent should be reduced. Mr Crosse was of the opinion that the statutory rental value of the property was €518,000. David Potter, a valuer with Savills, was retained by RGRE Grafton. He said the statutory rent should be €1 million annually. Mr Crosse told David Whelan SC, for BCGLS, that he employed a 'zoning' of arrears of the floor space at the cafe which meant that Zone A, closest to the entrance, would be the most valuable. Each tranche of zones was measured at 20 feet from the entry. Mr Crosse said he used comparator properties on Grafton Street in his analysis and that Zone B would be valued at 50 per cent of Zone A and that Zone C would be valued at 50 per cent of Zone B. Mr Potter said an 'overall' view was more effective in determining the rent and that the use of the zoning model in this case led to a 'misvaluation'. Mr Potter said the use of the zoning model meant the restaurant floor space far from the door was now valued at a lower rate by Mr Crosse which 'undervalued' the restaurant area. 'Bewley's space at the back is big money, it's the main restaurant,' said Mr Potter. 'It can't be valued as if it is the cheapest, worst space. Zoning undervalues it significantly, as if the rear is ancillary, but it is not – it is a really attractive restaurant.' Mr Potter said that a valuation of €24 per square foot of the restaurant area – while the staff room in nearby McDonald's restaurant was valued at €60 per square foot – amounted to a 'fundamental misvaluation'. He said he was valuing the property as a restaurant and not a restaurant-retail use agreement and that Dublin City Council previously gave an opinion that it would prefer the use of Bewley's to be maintained as a restaurant and not a retail outlet. The case continues before Ms Justice Sara Phelan.
Irish Times
2 hours ago
- Irish Times
Splits emerge between European governments over US tariff talks
Splits have emerged between European governments over talks to avert crippling tariffs on trade, as EU negotiators press United States president Donald Trump's administration for a deal in the next two weeks. Ireland, Germany, Italy and others are keen to land a quick deal with the Trump administration, while the French government is concerned about the European Union giving too many concessions. Mr Trump has threatened to put tariffs of 50 per cent on imports sold into the US from the EU, unless the two sides agree a trade deal by July 9th. Near-blanket tariffs of 10 per cent have been charged on EU goods since early April, with cars and steel subject to higher 25 per cent duties. Negotiators from the European Commission, the EU executive that leads on trade policy, have been putting more pressure on US counterparts, to get some form of tariff deal over the line before the July 9th deadline. READ MORE There is concern in Government that existing tariffs will become the new 'baseline', two sources said. Cementing tariffs at that rate would still have a significant economic impact, given the huge amount the Republic exports to the US. Officials in the Department of Finance are preparing an assessment of the impact to the Irish economy if tariffs of 10 per cent remain . European Commission president Ursula von der Leyen briefed EU leaders at a summit in Brussels late on Thursday about the progress of talks. It is understood she gauged how much national capitals would be ready to give in the tariff negotiations. [ Trump's on-off tariff announcements now the main threat to global growth Opens in new window ] Germany and Italy want the commission to make sure it agrees some type of deal, or the broad strokes of an agreement that heads off steeper tariffs, according to one source briefed on the discussions. It is understood the French government has been more hesitant and concerned about the level of concessions the EU would give to the Trump administration. French president Emmanuel Macron has said that if some US tariffs became permanent, the EU would have to consider putting similar duties on goods coming from the US. EU negotiators are expected to intensify efforts to hammer out a deal with their US counterparts in the next 12 days. Officials have largely accepted that any deal will not remove Mr Trump's 10 per cent ' liberation day ' tariffs, which apply to nearly all trade except pharmaceutical products and computer chips, which he has promised to hit with separate levies. EU trade commissioner Maroš Šefčovič said he is continuing to work towards a 'negotiated solution', after a phone call with US trade representative Jamieson Greer on Friday afternoon. Dublin and other capitals are eager to land at least a preliminary agreement, rather than extend the US tariff deadline beyond July 9th. Government sources said there is a lot of unease about the uncertainty the threat of looming tariffs was causing businesses. [ Alcohol health-warning labels to be delayed amid US-EU tariff dispute, says Harris Opens in new window ] The commission is preparing a package of retaliatory tariffs as leverage to levy on US trade if negotiations stall. It has proposed targeting Boeing and other aircraft manufacturers, the automobile industry and a host of other US products and sectors. The Government has asked the commission to reconsider putting counter tariffs on aircraft, medical devices, bourbon and agricultural products, to shield Ryanair, Irish whiskey distillers and the medtech sector from US crossfire in the event of a full-blown trade war. The EU's retaliatory package would only affect €25 billion worth of US trade, rather than €95 billion, if the EU was to remove from the tariff list every product member states want off, the commission recently told diplomats in a closed-door meeting.
Irish Times
2 hours ago
- Irish Times
Charity finance manager who raised concerns over accounts awarded €35,000 for dismissal
A charity has been ordered to pay its former finance manager nearly €35,000 for dismissing him 'wholly or mainly' because he voiced fears its accounts might not stand up to an audit. The Workplace Relations Commission (WRC) ruled that an email from the employee, a chartered accountant, looking for 'extra time' to investigate a loss of €33,000, sparked an 'adverse' response from its former chief executive. In a ruling just published, the WRC held back the charity's identity, despite the complainant's objections to holding the case in private, citing the nature of its work and the potential that a Garda probe into allegations of 'criminal conduct and financial irregularities' might be prejudiced. The charity asked that the case be entirely anonymised on the grounds that 'negative publicity' would lead to those using its services losing confidence. READ MORE The accountant, who represented himself before the WRC in March said he took up work with the charity as an independent contractor in June 2023 and joined its staff on September 30th that year. The charity's previous finance manager had been out sick before leaving the organisation, while an accounts assistant also left in October 2023, leaving the complainant responsible for the bookkeeping and payroll, and dealing with creditors as well, the tribunal heard. On October 26th, 2023, the complainant said, he told a board member, Mr A, he would have management accounts available 'as soon as possible' in response to a query. The organisation's chief executive wrote the following day, the eve of the October bank holiday weekend, asking after the accounts and stating they had been due the previous day. The claimant replied that he was looking into a 'draft loss of €33,000' and had identified matters requiring 'explanation and correction'. 'I must do a thorough clean up now in order to pass audit by end of January 2024. I need some extra time please,' the email concluded. When the chief executive said the board member would come to the office the following Tuesday to 'assist with the anomalies in the management accounts' the claimant expressed concerns about independence, the email thread submitted to the WRC read. The chief executive said he was 'comfortable' with the board member assisting. The complainant told the WRC the costs were being treated as current liabilities on the balance sheet and he was not confident they were being posted correctly. 'Substantial payments leaving the bank account in October 2023 triggered the query, and there was a snowball effect from there,' he said in his evidence, adding that he 'wanted to see what else was outstanding'. The claimant said he 'wasn't sure' at the time whether or not there was wrongdoing afoot at the charity but he was 'confident that company law was not being complied with and that books and records were not being kept, which is an offence'. He added that when he used the phrase 'pass audit' he 'did not do that lightly'. 'Accounts don't lie,' he said, adding that if he was in the place of his boss, he would have seen it as a 'red flag' and given more time to examine the matter instead of dismissing him. He called in sick the Tuesday after the bank holiday. The chief executive wrote to him on Thursday, November 2nd terminating his probationary employment with immediate effect. He had been a direct employee of the charity for just over a month. He also made formal written complaints to the Garda Fraud Squad, and the Charities Regulator the tribunal heard. The respondent's lawyers submitted that these complaints cited 'alleged misappropriation of funds by the CEO'. Una Clifford BL instructed by John Carroll of Crowley Millar Solicitors, for the charity, argued that the email was not a protected disclosure, but 'just another excuse' for delay due to 'poor performance'. The board member, Mr A, said he was an accountant himself and did not consider the complainant 'competent' in the role. Mr A accepted the accounts 'required improvement' but said they were not in 'as bad a state' as the complainant alleged. The chief executive, in his evidence, denied the email of October 27th was a protected disclosure. He said concerns were raised at a board meeting on Wednesday, November 1st about the complainant having 'inappropriate contact with service users', 'having his feet on the desk' and an 'issue' with Garda vetting. The accountant was terminated for poor performance, he added. The witness said the claimant had 'disobeyed a direct reasonable instruction' about going to a Friday coffee morning with service users. The claimant said he only ever went in the company of a professional employed by the charity. The tribunal also heard that in the days between the claimant writing his email and being dismissed, the charity's board discussed his Garda vetting application and noted in its minutes that he was 'not forthcoming' when he filled out the form. The claimant told the WRC that he had been bogged down with work and was delayed in submitting the application – but that in any event, the Garda vetting bureau had advised him he did not need to be vetted. He accepted when questioned that vetting was a term of his contract, but asked in response why he had been 'allowed on site without Garda vetting'. Adjudicator Michael MacNamee wrote that when he heard the evidence on the question of alleged inappropriate contact with service users, he was 'left with the impression that it was far less serious than was suggested in the submissions'. It lacked 'credibility' as a reason for dismissal, he added. Any issue around Garda vetting was 'no longer live' by the time it was brought before the board, he added. The adjudicator noted that both Mr A and the complainant were accountants, but neither could be said to be independent, so there was no independent expert evidence before him on the accounts. He concluded on the balance of probabilities that the charity had failed to rebut the presumption that the claimant had a 'reasonable belief that the accounts were not being kept in accordance with the legal requirements'. He concluded that the email of October 27th, 2023 from the complainant was a protected disclosure, and that this 'started a chain reaction which led directly to the complainant's dismissal'. The WRC ruled that the accountant's dismissal 'resulted wholly or mainly from the making by him of a protected disclosure'. Whatever concerns the chief executive had about the worker's performance 'whether justified or not', there was no written record of anything serious enough to require more than some 'coaching', the adjudicator wrote. He found the chief executive had a 'strong adverse reaction' to the email of October 27th, 2023 which was exacerbated by the complainant's emails pushing back on allowing Mr A becoming involved, and leading ultimately to the chief executive's patience running out. He ruled the worker was unfairly dismissed and awarded him €34,737 in compensation.
