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Jersey Electricity Reports Strong Half-Year Results with 9% Revenue Growth

Why we think this is good

Jersey Electricity has delivered a robust set of results for the first half of 2025. The company reported a 9% increase in revenue to £82.3m, driven by a 2.7% rise in electricity unit sales and a 7.5% tariff increase. Profit before tax saw a modest improvement from £10.3m to £10.5m, while earnings per share grew from 26.15p to 26.60p. The Energy business, in particular, showed strong performance with operating profit increasing from £8.5m to £10.3m. While net cash decreased due to increased capital investment, this appears to be part of a strategic growth plan rather than a cause for concern. The company's hedging strategy for electricity purchases through 2027 provides financial stability and resilience against market volatility. Overall, these results demonstrate solid operational performance and financial management in a challenging energy market environment.

Key Points

  • Revenue increased by 9% to £82.3m
  • Profit before tax rose slightly from £10.3m to £10.5m
  • Earnings per share grew from 26.15p to 26.60p
  • Electricity unit sales increased by 2.7%
  • Energy business operating profit up from £8.5m to £10.3m
  • Net cash decreased from £16.7m to £8.5m due to strategic investments
  • Hedging strategy in place for electricity purchases through 2027
  • 7.5% tariff increase implemented in January 2025
  • No further price increases anticipated for the remainder of 2025
  • Interim dividend increased from 8.40p to 8.82p per share

Summary

The utility company reported a 9% revenue increase and slight profit growth in its half-year results. Strategic investments and a robust hedging strategy position it well for future growth despite some cash reduction.

Jersey Electricity's half-year results for 2025 show solid performance with a 9% revenue increase to £82.3m. The company saw a 2.7% rise in electricity unit sales and implemented a 7.5% tariff increase. Profit before tax improved slightly from £10.3m to £10.5m, with earnings per share growing from 26.15p to 26.60p. The Energy business was particularly strong, with operating profit up from £8.5m to £10.3m. While net cash decreased from £16.7m to £8.5m due to increased capital investment, this appears to be part of a strategic growth plan. The company's hedging strategy for electricity purchases through 2027 provides financial stability. No significant market pressures or declining trends were reported, suggesting a positive outlook for the company.

Key Dates

27 June 2025
Interim ordinary dividend payment
16 December 2025
Announcement of full year results
HALF YEAR