Whitegate oil refinery revenues surge on the back of soaring oil prices

Owner Irving Oil posts pre-tax loss after booking asset impairment losses

The Irving Oil Whitegate Refinery is Ireland’s only refinery. Picture: Eddie O'Hare

Pre-tax losses at the firm which operates the Whitegate oil refinery in Cork last year increased eight-fold to $88.14m (€83.92m).

The Irving Oil operated refinery recorded the increased losses despite revenues increasing by 83pc from $1.15bn to $2.1bn on the back of soaring oil prices.

However, the sharp rise in oil prices was also the chief reason behind the firm’s purchases rising by $929m or 86pc from $1.07bn to $2.008bn.

The company recorded a gross loss of $14.46m as the company’s employee costs increased from $26.7m to $35.5m and manufacturing, operating and administrative expenses increased from $41.93m to $62.84m.

The company recorded pre-tax losses of $88.14m compared to pre-tax losses of $11.1m in 2020.

The increased pre-tax losses at Irving Oil Whitegate Holdings Limited arose from the company booking non-cash asset impairment losses of $59.16m “due to the adverse economic effects created by the Covid-19 pandemic and other market conditions”.

The directors state that $43m of the impairment loss related to assets under construction and was "due to a decision to terminate the development of the Heavy Atmospheric Gas Oil unit at the Whitegate refinery”.

The Irving Oil Whitegate Refinery is Ireland’s only refinery and the directors for the Irving Oil firm state that since the refinery opened in 1959, the facility has played a critical role in the country’s energy infrastructure, supplying 40pc of the petroleum needs of the country.

The directors state that together with the Tedcastle group of companies acquired by Irving Oil in 2019, the group provides a broad and diverse energy supply chain and a strong and reliable source of energy products to the Irish market.

Numbers employed at the company last year decreased by four to 226 and staff costs increased sharply from $26.7m to €35.5m that included pay costs rising from $20.57m to $28.8m.

Key management personnel received $2.33m while directors shared $578,000.

The accounts show that the firm’s health and safety costs relating to Covid-19 last year amounted to $229,000 following a spend of $1.38m under that heading in 2020.

The loss last year takes account of combined non-cash depreciation and amortisation charges of $12.5m.

At the end of December last, the firm had accumulated profits of $15.76m. Shareholder funds totalled $50.78m.