Esso reports pre-tax losses of €7.7m

THE Irish arm of international energy giant Exxon Mobil last year sustained a pre-tax loss of €7.7 million in spite of revenues climbing to €654m.

Accounts just filed with the Companies Registration Office by Esso Ireland Ltd show that a €1.3m write-down in the value of a retail site contributed to the loss.

The figures show that revenues at Esso Ireland increased by 10% from €595.3m to €654.5m.

The loss recorded last year 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 10% but at the expense of gross margin. Continued vigilance has ensured that other costs have been reduced despite inflationary pressures”.

The company’s cost of sales increased from €556.3m to €622.7m while distribution costs decreased from €37.8m to €31.9m.

The principal activity of the company is the distribution and marketing of petroleum products in Ireland.

Operating losses last year increased by 16% 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 expense of €2m increased the losses to €7.7m.