Pre-tax profits slide at oil firm despite rise in revenue

PRE-TAX profits at the largest Irish-based public and private company outside the financial services sector dropped by 24% last year in spite of revenues climbing by 31% to $29.1 billion (€21.4bn).

According to accounts just filed by the main Irish subsidiary of Mexican oil company Petroleos Mexicanos, the company’s pre-tax profits in the 12 months to the end of December last declined from $531 million (€389m) to $410.2m (€300m).

The figures show that the holding company — which has no employees and is based at the International Financial Services Centre in Dublin — paid a dividend of $300m (€220m) last year.

The Mexican state-owned Petroleos Mexicanos is one of the largest non-publicly listed companies in the world in terms of revenues and employs 138,215.

The Irish company is engaged in the purchase and sale of petroleum and its derivatives in the international market under a specific authorisation from Petroleos Mexicanos.

PMI Trading Ltd also performs hedging transactions on regulated markets and outside the regulated markets under strict conditions to minimise the counterparty risk.

The directors’ report states that “the business of the company is at all times concluded outside Ireland. The company maintains no presence in Ireland other than its registered office”.

The directors state: “Both the level of business and the year end financial position were satisfactory and the directors expect the present level of activity will be sustained for the foreseeable future.”

The company had $1.38bn (€1.01bn) in shareholder funds at the end of last year.

The vast bulk of the company’s revenues is generated in Mexico where $20.6bn (€15.1bn) was generated with $6.3bn (€4.5bn) in the US; $1bn (€734m) in Europe and the remainder in the Far East and other Latin American countries. The company paid tax of $97m (€71m) last year.