Esso Ireland records pre-tax loss of €7.7m
THE Irish arm of international energy giant Exxon Mobil last year sustained a pre-tax loss of €7.7m in spite of revenues climbing to €654m.
Accounts just filed with the Companies Registration Office by Esso Ireland Ltd show that a €1.3m writedown in the value of a retail site contributed to the loss.
The figures show that revenues at Esso Ireland rose by 10pc from €595.3m to €654.5m in the 12 months to the end of December last year.
The loss recorded in 2010 follows the company recording a €9.6m loss in 2009.
According to the directors "the business climate in Ireland has continued to be extremely challenging".
"Despite this, turnover increased by 10pc but at the expense of gross margin.
"Continued vigilance has ensured that other costs have been reduced despite inflationary pressures."
The figures show that the company's cost of sales increased from €556.3m to €622.7m, while distribution costs decreased from €37.8m to €31.9m.
The company's administrative expenses dropped from €4.6m to €4m.
The principal activity of the company is the distribution and marketing of petroleum products in Ireland. The figures show that the company's operating losses last year increased by 16pc from €3.6m to €4.2m.
A €1.7m gain on the sale of tangible fixed assets reduced the company's losses to €2.5m. However, interest payable of €3m and other finance expenses of €2m increased the company's losses to €7.7m.
The loss also takes account of a non-cash depreciation cost of €4.67m. Tax paid of €1.4m resulted in the company's losses increasing to €9.2m.
The company paid no dividend last year and the company's accumulated profits at the end of last year were €17.9m.