Viridian expects results in line with forecast

Electricity company the Viridian Group forecast that results for the year to end-March 2004 will be in line with expectations…

Electricity company the Viridian Group forecast that results for the year to end-March 2004 will be in line with expectations.

But the company, the second-largest generator of electricity in the State, warned this forecast comes before taking into account the adverse impact of increased fuel costs on its Northern Ireland-regulated operations.

Its north Co Dublin Huntstown plant generates 340 megawatts of power.

Higher-than-expected fuel costs mean the NIE regulated businesses will report a net under-recovery against the income to which they are entitled under their regulatory formulas, the group said.

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It added that the under-recovery will be recovered during the year to March 2005, through tariffs already agreed for that year.

It said NIE is performing well under the current Transmission and Distribution price control and NIE Supply is close to agreeing with Ofreg an extension of its price control from April 2005 to March 2007.

Viridian Power & Energy is expected to report full-year revenues of £200 million sterling, up from £161.7 million last time, reflecting increased sales in both Northern Ireland and the Republic of Ireland.

Viridian said the accounts for the year to March 2004 will include a £3 million to £4 million exceptional cost relating to a pension liability at the electrical goods retailer Lislyn. Viridian sold its 30 per cent shareholding in Lislyn in May last year and in October Lislyn went into voluntary administration.

The accounts will also include an exceptional gain of £17.7 million on the sale of Moyle Interconnector and an exceptional loss of £1.8 million from the disposal of Fleet Solutions.