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ESB HAS ANNOUNCED that it is to sell its 50 per cent shareholding in each of its international tolling plants.
The company owns a 50 per cent stake in Marchwood Power, an 840MW power station near Southampton in England which commenced construction in 2007 and entered commercial operations in late 2009. The company is also owned by Southern Energy (SSE).
Along with Osaka Gas of Japan, ESB also jointly owns Bizkaia Energia SL, a 755MW power station in Amorebieta in Northern Spain. ESB will sell its shareholding for the plant, which was the first internationally-owned Independent Power Producer (IPP) in Spain, has been in commercial operation since 2005.
In a statement from ESB, they say they played a significant role in developing both stations including “the origination of both opportunities, the raising of finance, the forming of partnerships with two international utilities, Osaka Gas and SSE and the management function at the construction phase of both stations”.
“Both have been good investments for ESB and are a testimony to ESB’s internationally recognised skills in engineering and project management,” the statement read.
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Hopefully they can re-invest the returns and make more. It’s great to see an Irish government owned company being successful and they should be encouraged to continue. it would be shame if the government opportunistically took the profit as a dividend now and forego later greater earnings.
Are they selling at a profit for their shareholders i.e. us, or to repay the bond holders?
if I’m right in saying esb is a semi state company(ie set up by the state and they only have shares in it. investment is from turnover and not from government coffers) I don’t remember anything about the esb costing the taxpayer anything. but it/was generating profit abroad and bringing it back here in the way of jobs and grid development and renewal. which as an island nation is a good thing. no?
If they were ‘good investments’ why are they being sold?
I think the concept is to get them up and running then repeat the process somewhere else.
They’re being sold as part of the government agreement with the Troika, not voluntarily, and because they were profitable- there’s no point selling stuff that’s not!
But if it’s profitable the sale would hurt bottom line going forward no? Another price hike to massage the margin back to where it would have been on the cards at some point?
assuming the money raised will not go into paying the troika. If it’s reinvested properly then it’s a good thing.
The ESB are selling these highly profitable generating stations against their wishes and objectives by the government as they have requested a ‘special dividend’ from the ESB group of companies by 2014. These stations have been chosen as they are some of the most profitable and most modern in their portfolio hence also the most likely to raise the amount required by the government given the current financial circumstances in the eurozone. This has come from a recommendation by the Troika although the government are glossing over the finer details by stating that the funds will be invested in job creation (easy excuse as the money that should be used for job creation is currently being used to repay debt). The majority of skilled professionals employed in these stations are Irish on rotation and/or contracts. This is essentially the government undermining the good management of one of the most successful Irish companies and pillaging its assets (which are in turn OUR assets) to pay for the mistakes of the greedy. I apologise for the long winded reply but I believe that the citizens of this country have a right to know what is being done to OUR assets in order to repay the debt of others. These assets could be earning us money (thus alleviating the tax burden) for years to come whilst also generating employment for our young graduates.
I forgot to mention that the ‘special dividend’ requested was for €400m. Based on the size of these two stations a 50% share in both would not be too far of the target funds requested by the government.
They still operate and manage a lot more power stations in the UK/ Africa Malaysia etc, And the ESBI are renowned throughout the world for their expertise in building and running power stations.
Yet FG would soon flog it off for a few bob without seeing the bigger picture in that over 1000 people are employed by the company and pay taxes here in Ireland, So much for the smart economy that the govt waffle on about yet would still sell of the company without blinking muppets.
Dave , how can you make such a comment when then the actual figures are not published yet. You just want to see your name in print alongside too many of the guys on this site. React first ,think later. Rubbish. The decision may be good or bad , but you ought not comment until you have knowledge of the deal . In fact The Journal is very premature in running this story without basic facts. It is as bad as you.
Eh Rory unlike our politicians I know what it is like to work in the real world and see the bigger picture etc, As for engaging my brain before typing on here anyone with half a brain would look at the ESBI as a company making a profit while also growing with over 1000 employees.
Now just say the govt sold of this section of the ESB group to a foriegn company, Do you honestly think that the company would keep the jobs here in Ireland?more than likely they would close down the Irish operation and move the jobs to their HQ.
Amy ,you missed the important bit. For how much are the shares being sold and how much was the initial investment? The other common taters are quick to throw in their bob’s worth without knowing those two figures. Not surprising , going by the standard of comments here.
have your say