Business Irish

Tuesday 21 May 2019

Whitegate oil refinery company falls into the red

Whitegate oil refinery
Whitegate oil refinery

Gordon Deegan

The firm that operates the State's only oil refinery plunged into the red last year to record pre-tax losses of $42.48m (€32.17m).

New figures show that US-owned Phillips 66 Ireland Ltd recorded the loss after enjoying pre-tax profits of $26.6m in 2012 - a negative swing of $69.14m.

Revenues declining by 5pc to $2.971bn in the 12 months to the end of December last.

Earlier this year, Phillips 66 abandoned its plans to sell its Whitegate refinery, while its Bantry Bay terminal remains up for sale.

The group's cost of sales reduced by 2pc to $3bn last year.

The directors' report states that "while the sharp correction to demand patterns has stabilised following the economic crisis in Ireland and Europe, demand in general has returned to a declining trend.

"Of greater impact is that external competitive pressures have risen. This is seen from the USA following their shale energy revolution, new build refineries in the Middle East and continued supply into Europe from Russia."

The directors state that the firm's assets ran well with strong reliability and availability.

Directors' remuneration increased from $1.5m to $2m. Non-cash depreciation costs totalled $9m.

Shareholder funds totalled $42m.

Irish Independent

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