New figures show that US-owned Phillips 66 Ireland Ltd recorded the loss after enjoying pre-tax profits of $26.6m in 2012 — a negative swing of $69.14m.
This follows revenues declining by 5% or $143m from $3.114bn to $2.971bn in the 12 months to the end of December 31 last.
Earlier this year, Phillips 66 abandoned its plans to sell its Whitegate refinery, while its Bantry Bay terminal remains up for sale.
The group’s cost of sales reduced by 2% from $3.065bn to $3bn last year.
The directors state that the decrease in revenues was primarily attributable to decreased product prices and the cost of sales decrease of 2% “was primarily attributable to decreased cost of crude feedstocks compared to those incurred, on average, throughout 2012”.
The directors state that the impact of turnover and cost of sales figures is that a gross loss of $29.48m compared to a gross profit of $48.92m in 2012, representing a decrease in gross margin from 1.57% to -.99%.
The directors’ report states that “whilst the sharp correction to demand patterns has stabilised following the economic crisis in Ireland and Europe, demand in general has returned to a declining trend.
“Of greater impact is that external competitive pressures have risen. This is seen from the USA following their shale energy revolution, new build refineries in the Middle East and continued supply into Europe from Russia.”
They state that “the combined impact is that refining margins have been depressed and can be expected to remain so while Europe sees a supply and demand imbalance.”
The report states that “In Ireland, the business has seen growth in its market share for transport and heating fuels. Market demand for refining feedstocks manufactured by the business has increased with improved options and realisations on exports
The report states that at the Bantry Bay terminal, the international market conditions for the petroleum storage market were comparable to 2012.