Whitegate Refinery enjoys €13m profit

THE Whitegate Refinery in Co Cork owned by ConocoPhillips returned to profit last year to record pre-tax profits of $17.7 million (€13.1m) after revenues topped $2.19 billion (€1.62bn).

According to accounts just filed with the Companies Office, ConocoPhillips Whitegate Refinery Ltd recorded a positive swing of $29.5m after revenues increased by 34% from $1.6bn to $2.1bn in the 12 months to the end of December last.

The pre-tax profit last year of $17.7m followed a pre-tax loss of $11.8m in 2009 while cost of sales decreased by 33% from $1.8bn to $2.14bn.

The numbers employed at the refinery remained static last year at 156, with staff costs declining marginally to $27.7m.

According to the directors’ report for last year the company was subject to a volatile refining margin environment due to weak energy demand, commodity price volatility, a global recession and financial turbulence.

The report states: “Despite the volatile market environment, the company continued to perform strongly from an operational standpoint.”

It states: “Construction of the 440MW Bord Gáis Eireann gas- fired power plant on the refinery site continued through the year with commissioning completed in 2010. Along with lease income now received, the refinery has seen significant economic benefits from the natural gas connections to the plant, enabling the plant to substitute more expensive fuels.”

The directors state a $36m investment was approved last year for an amine and sulphuric acid plant and is due for commissioning next month.

The report states the company’s revenues increased 34% due to increased product prices and cost of sales rose 33% due to increased costs of crude feedstock.

The figures show that company’s operating profit increased more than seven-fold from $3.8m to $29.8m last year. However, interest payments of $12.2m reduced the company’s profits to $17.7m. Remuneration for directors last year rose to $1.19m.