Losses at Cork’s Whitegate oil refinery soar to $88 million

The company that operates the Whitegate oil refinery in Cork saw its pre-tax loss increase eight-fold last year to $88.14 million.

The refinery, operated by Irving Oil, saw the increased losses even as revenue rose $953 million, or 83 percent, from $1.15 billion to $2.1 billion on rising oil prices.

However, the sharp rise in oil prices was also the main reason the company’s purchases increased by $929 million from $1.07 billion to $2.008 billion.

The company recorded a gross loss of $14.46 million Personnel expenses increased from $26.7 million to $35.5 million and manufacturing, operating and administrative expenses increased from $41.93 million to $62.84 million.

The company posted a pre-tax loss of $88.14 million, by comparison Pre-tax losses of $11.1 million The increased pre-tax losses at Irving Oil Whitegate Holdings Limited resulted from the posting of non-cash asset impairments of $59.16 million “due to the adverse economic impact of the Covid-19 pandemic and other markets conditions”.

Directors state that $43 million of the impairment loss was on assets under construction and “was due to a decision to terminate development of the Heavy Atmospheric Gas Oil unit at the Whitegate Refinery.”

The Irving Oil Whitegate Refinery is Ireland’s only refinery and directors of the Irving Oil company state that since the refinery opened in 1959, the plant has played a vital role in the country’s energy infrastructure and supplies 40 per cent of the country’s petroleum needs .

The Directors state that the group together with the Tedcastle group of companies, which was acquired by Irving Oil in 2019, provides a broad and diverse energy supply chain and a strong and reliable source of energy products to the Irish market. The company’s headcount fell by four last year to 226, and personnel expenses rose sharply from $26.7 million to €35.5 million. the including payroll costs, which increased to $28.8 million from $20.57 million.

Key executives received $2.33 million, while directors shared $578,000.

The accounts show that the company’s health and safety expenses related to Covid-19 totaled $229,000 last year, after spending $1.38 million under that heading in 2020.

Last year’s loss includes combined non-cash depreciation and amortization costs of $12.5 million. At the end of December last year, the company had posted $15.76 million in profits. Shareholder funds totaled $50.78 million.

Directors state that the ongoing Russian invasion of Ukraine and other geopolitical instabilities have led to volatility in commodity prices and inflation.

They state that “although the group has a diverse and global supply network, the Whitegate Refinery is not an importer of crude oil from Russia.”

“The group remains focused on maintaining a secure energy supply to the areas served”, they said

https://www.independent.ie/business/losses-soar-to-88m-at-whitegate-oil-refinery-in-cork-42189529.html Losses at Cork’s Whitegate oil refinery soar to $88 million

Fry Electronics Team

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