Topaz to invest €20m in upgrading network

The Denis O’Brien-controlled Topaz Energy is to invest €20m this year on overhauling and upgrading its retail network, before launching a fresh investment programme in 2016 when it formally takes ownership of Esso’s forecourt network.

The company, which controls around 12% of Ireland’s retail petrol/forecourt market, yesterday reported a 9% increase in annual operating profits, for the 12 months to the end of last March.

Profits amounted to €13.9m, up from €12.6m a year earlier. Revenues were slightly down from €3.3bn to around €2.9bn.

Underlying pre-tax profits came to €2.1m. However, exceptional items (associated with debt restructuring) of nearly €7m meant the company generated a pre-tax loss of €4.7m, but this was down from losses of €13.6m for the previous year.

Topaz announced its agreement to acquire Esso’s company-owned petrol stations in Ireland, which number nearly 40 in December; a deal which will boost its market share to around 17%.

That share is expected to climb to 30% when Topaz also receives the rights to supply up to 60 additional Esso garages which are run by independent dealers. The takeover is expected to conclude in late 2015, after which Topaz will invest in rebranding the Esso outlets.

New Topaz CEO Emmet O’Neill said the company has been performing well in its current financial year. He said 2014 was a good year for the business; which reduced its debt levels by 85%.

“This has freed up the resources we need to make a really substantial investment in the business in Ireland and to ensure that we regain our leadership position in the sector here,” he said.