EirGrid plc Annual Report 2011

More documents

Recommendations

Info

EirGrid plc Annual Report & Accounts 2011 2. Statement of Accounting Policies (continued) Historically, changes in useful lives have not resulted in material changes to the Group’s depreciation charge. • Revenue Connection fee revenue from the Gate 3 project is based on an estimate of the project completed, being the proportion of costs incurred for work performed on the project to date relative to the estimated total costs of the project. Revenue related to the Gate 3 project recognised during the year to 30 September 2011 totalled €1.6m (2010: €2.7m). • Retirement benefits obligations The Group operates two defined benefit pension plans. The actuarial valuation of the pension plan liabilities are based on various financial and demographic assumptions about the future including discount rates, inflation, salary increases, pension increases and mortality rates. The Group’s obligation in respect of the plans are calculated by independent qualified actuaries and are updated at least annually. The obligation at 30 September 2011 is €75.0m (2010: €74.2m) and the fair value of plan assets is €60.5m (2010: €53.8m). A net pension asset arising on the SONI Focus plan of €1.3m (2010: €nil) is not recognised as it is not certain that a refund will be available from the plan, nor will the netpension asset result in a reduction to future contributions. This gives a net pension deficit of €15.7m (2010: €20.4m). • Deferred tax Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which any unused tax losses and unused tax credits can be utilised. The Group estimates the most probable amount of future taxable profits, using assumptions consistent with those employed in impairment calculations. These calculations require the use of estimates. The net deferred tax asset at 30 September 2011 was €6.4m (2010: net deferred tax asset of €5.6m). • Intangible assets The Group tests annually whether its goodwill and licence agreement assets have suffered any impairment. The recoverable amount of the intangible assets allocated to a CGU has been determined by value in use calculations, which use budgets and forecasts covering the period to 30 September 2017. These calculations require the use of estimates and assumptions, which are discussed in detail in note 10. Intangible assets at 30 September 2011 were €17.3m (2010: €21.1m). 82
EirGrid plc Annual Report & Accounts 2011 3. Segment Information An operating segment is a component of the entity that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the Board, the entity’s chief operating decision maker, to make decisions about resources to be allocated to the segment and assess its performance and for which discrete financial information is available. The Group is analysed into four main reportable segments for internal reporting purposes: - EirGrid Transmission System Operator (‘EirGrid TSO’), which derives its revenue from providing services as the TSO in Ireland and is regulated by the Commission for Energy Regulation. - Single Electricity Market Operator (‘SEMO’), which derives its revenue from acting as the Market Operator for the wholesale electricity market on the island of Ireland. - SONI Transmission System Operator (‘SONI TSO’), which is licensed by the Northern Ireland Authority for Utility Regulation and derives its revenue from acting as the TSO in Northern Ireland. Trading in EirGrid UK Holdings Limited, the holding company of the SONI subsidiary, has been included in the SONI segment. - East-West Interconnector (‘EWIC’), being the project to link the electricity grids of Ireland and Britain. The segment results for the year ended 30 September 2011 are as follows: EirGrid SONI Notes TSO SEMO TSO EWIC Total € ’000 € ’000 € ’000 € ’000 € ’000 Income Statement items Segment revenue 265,952 136,833 67,894 - 470,679 Direct costs (198,919) (112,248) (51,759) - (362,926) Gross profit 67,033 24,585 16,135 - 107,753 Other operating costs (45,516) (18,708) (13,047) (196) (77,467) Operating profit/(loss) 21,517 5,877 3,088 (196) 30,286 Interest and other income 4,224 Finance costs (3,051) Profit before taxation 31,459 Income tax expense (4,875) Profit for the year 26,584 Balance Sheet items Segment assets 153,132 127,249 20,715 326,903 627,999 Goodwill and intangible assets 10 17,347 Total assets as reported in the Consolidated Balance Sheet 645,346 Segment liabilities 309,494 56,681 41,675 149,471 557,321 Total liabilities as reported in the Consolidated Balance Sheet 557,321 83
Page 1 and 2:
EirGrid plc Annual Report 2011 Secu
Page 3 and 4:
EirGrid plc is a leading energy com
Page 5 and 6:
EirGrid plc Annual Report & Account
Page 7:
Cable-laying, East West Interconnec
Page 10 and 11:
Page 12:
Page 15 and 16:
The Control Room at SONI, Belfast A
Page 17 and 18:
Customer Profile John Weir Intel Cu
Page 19 and 20:
Customer Profile George Sonneborn S
Page 21 and 22:
All Island Weekly Peaks 2010 2011 M
Page 23 and 24:
Customer Profile Bruce Kelly iPower
Page 26 and 27:
Transmission System 400kV, 275kV, 2
Page 28 and 29:
Page 30 and 31:
Construction underway on the transm
Page 32 and 33:
Page 34 and 35: EirGrid plc Annual Report & Account
Page 39 and 40: Customer Profile Brendan McDonagh I
Page 43 and 44: 1 2 3 4 5 6 7 8 9 10 11 1. Regina M
Page 45 and 46: She was elected to the Board of the
Page 50 and 51: Top left to right: Dermot Byrne, Ni
Page 53 and 54: Financial Statements as at 30 Septe
Page 67 and 68: Consolidated Statement of Recognise
Page 69 and 70: Company Balance Sheet as at 30 Sept
Page 71 and 72: Company Statement of Changes in Equ
Page 73 and 74: Company Cash Flow Statement for the
Page 83: EirGrid plc Annual Report & Account
show all

EirGrid plc Annual Report 2011

Create successful ePaper yourself

Delete template?

Save as template?