Oil distributor records pre-tax loss of €1.4m

A Cork-based oil importer and distributor slipped into the red last year in spite of a massive jump in revenues to €449.4m.

According to accounts just filed with the Companies Office, they show World Fuels Market Ltd recorded a pre-tax loss of €1.4m in spite of revenues increasing by 75% from €258m to €449.4m in the 12 months to the end of December 2011.

The directors’ report states: “In 2011, the group had significant growth in sales volumes and revenues as it expanded its product line and customer portfolio.”

The directors state that the 75% increase in revenues “was achieved in a very difficult trading environment with overall market demand declining. The strong revenue growth resulted in several operational challenges and costs that are not expected to re-occur”.

The directors add: “Whilst the financial performance of the group in 2011 was below directors’ expectations, the outlook for 2012 is positive as margins on sales improve.”

The loss last year follows the group recording a pre-tax profit of €2m in 2010.

The figures show that the group last year recorded a profit of €778,156 before interest payments.

Interest payments totalling €2.1m compared to interest payments totalling €777,000 contributed to the €1.4m loss.