The ESB is preparing to pay the Government one of the largest ever dividends from a State company when it passes on about €70 million to the Minister for Finance, Mr McCreevy.

The company is expected to announce its annual results within a fortnight, which will show turnover rising from €2.1 billion in 2002 to €2.3 billion and after-tax profits up from €159 million to almost €250 million.

The healthy financial results are likely to put further pressure on the company from unions, which are seeking an 18.5 per cent pay rise and a larger equity share in the company.

A ballot of ESB staff is provisionally scheduled to take place on April 6th. Workers are demanding a 20 per cent stake in the company. A 5 per cent stake is already owned by the Employee Share Ownership Trust.

While the Minister for Communications, Marine and Natural Resources, Mr Ahern, has ruled out privatising the ESB transmission and distribution systems, some believe the Government might still move to privatise individual stations. Unions oppose this but insist that, if it goes ahead, staff must be rewarded.

The ESB only decided to pay dividends in recent years and last year it paid more than €40 million to the Minister. This was far ahead of any other semi-state company.

ESB chief executive Mr Pádraig McManus is expected to tell the company's annual general meeting that, while profits are very healthy, the company must maintain this performance in order to fund its ambitious capital investment programme. The company has also invested heavily in various overseas projects via its ESB International subsidiary.

Late last year the company completed a $1 billion (€ 822 million) fund raising via two major international banks, ABN Amro and Barclays Capital.

The company is also coming close to making a decision on the coal-fired power station at Moneypoint, Co Clare. Upgrading this plant could cost up to €250 million.

Several State companies have not paid dividends for years, among them An Post, Aer Lingus, Bord Na Móna, RTÉ, Coillte and CIÉ.

While ESB is able to pay the largest dividend, Bord Gáis Éireann has also been a major contributor to the Department's coffers. The major problem is that few State-owned companies are profit making, with CIÉ, RTÉ and An Post producing serious losses in recent years.