Company Report: Kilroot
Kilroot power station was sold by its former owners, AES, to Czech shareholders in April. These accounts reflect the results while the power station was operated by the former owners.
AES Kilroot Power, at the end of its latest trading year of 2018, had two large electricity generating units, capacity 560 MW from burning either coal or oil, as well as 142 mw of capacity from four open cycle gas turbines.
The recent accounts for Kilroot reflect major changes in the assessed results following changes in the award, or failure to be awarded, contracts to generate electricity in the capacity auctions as part of the I-SEM all-island system.
The accounts for 2017 were prepared knowing that the large coal/oil units had failed to be awarded contracts to generate electricity as part of the new I-SEM system starting on October 1, 2018.
That failure to win those contracts lead to a decision to include an impairment charge of £118.6m for 2017. That led to an overall trading loss of £110.4m.
The impairment charges were also material to the pre-tax profit which became a loss of £92.0m.
During 2018, in the next auction for generating capacity, Kilroot was awarded contracts for the coal/oil burning plant. This reversed the earlier decision. Consequently, the accounts for 2018 now include a reversal of the earlier impairment charges in 2017. This led to an operating profit of £95.3m and a pre-tax profit of £96.9m.
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In March, the (former) owners of Kilroot, converted the statutory reserve and share premium in their accounts into a distributable reserve.
This was used to fund a dividend of £75.2m to shareholders AES. An internal loan £57.6m to AES was also fully settled.
Employment at the Kilroot plant which had been stable averaging 121 people in 2017, fell to 102 people in 2018.