Wednesday 21 March 2018

Esso Ireland swings into red with €9.6m pre-tax loss

John Mulligan

John Mulligan

Esso Ireland swung into the red last year as it recorded a pre-tax loss of €9.6m.

That compared to a profit of €3m a year earlier, as a more difficult economic climate took its toll.

Turnover at the group fell 29pc to €595m last year, according to accounts just filed at the Companies Registration Office for the business.

The revenue for Esso Ireland, which is a subsidiary of ExxonMobil, deals with the distribution of fuel around the country.

Gross turnover at the group, which includes excise duty charges and VAT, declined to €1.15bn from €1.38bn last year.

Despite the overall lower turnover, the tax element of that revenue rose to almost €561m from €546m.

Esso Ireland employs just 26 people, who were paid a combined €2.46m last year, or an average of €92,000 each. Total directors' pay declined to €258,000 from €367,000.

The accounts note that the company's land, including sites on which service stations are located, were last valued in 1989, resulting in a surplus of more than €17m which was allocated to a revaluation reserve.

The company said that last year it sold one site, resulting in more than €1.7m being released from that reserve.

In addition, the accounts note that last year another site's value had been reduced by almost €2m.

The directors of the company said they are not aware of any significant diminution of value the remaining assets.

In 2008, Esso Ireland inked a supply deal with Sweeney Oil with fuel at its 20 service stations and depots.

Sweeney Oil is part of Blackshore Holdings, the investment vehicle controlled by John Sweeney.

During the summer, the High Court approved a survival plan for Sweeney Oil Retail and Sweeney Oil Service Stations after Anglo Irish Bank had sought the repayment of its €3.5m debt due from the two firms. Mr Sweeney's various entities owe Anglo Irish Bank almost €50m.

Irish Independent

Business Newsletter

Read the leading stories from the world of Business.

Also in Business