Profits plummet at operator of Whitegate refinery to $10.5m

Whitegate Oil Refinery, which opened in 1959, can process up to 75,000 barrels of oil a day. Picture: Denis Scannell

Pre-tax profits at the firm which operates Ireland’s only oil refinery at Whitegate, Co Cork, plummeted last year by 93% to $10.52m (€9m).

The drop in profits at Irving Oil Whitegate Holdings Ltd followed revenues decreasing by 18% from $3.27bn to $2.68bn.

The directors state that refining margins in Europe were strong in the first half of the year, but they declined in the second half.

The directors state that “evolving international trade policies, political instability, and other global events continue to drive volatility in commodity markets”.

The group’s cost of sales reduced from $3.09bn to $2.67bn.

Numbers employed increased from 235 to 262 in 2024, with staff costs rising from $36.4m to $39.34m.

The group recorded a gross income of $19.39m in 2024, which was down 89% on the gross income of $176.7m in 2023.

Non-cash depreciation and amortisation costs of $19.66m further reduced the group’s profits.

The firm recorded an operating profit of $599,000 and finance income of $9.9m to result in the pre-tax profit of $10.52m.

Whitegate, which opened in 1959, can process up to 75,000 barrels of oil a day.

It plays a critical role in the country’s energy infrastructure, supplying 40% of the petroleum needs of the country.

In a note concerning a leak, the directors state on January 22, 2024, a leak was discovered on the gasoline line at the refinery resulting from a damaged gasket.

'Extensive recovery efforts'

The note states that “extensive recovery efforts were initiated and all appropriate authorities contacted”.

“The vast majority of the released product has been recovered. Any unrecovered product is located onsite at the refinery … the impact on the surrounding environment is minimal and there is not a significant financial impact,” it added.

Key management personnel received $2.98m, while directors shared $653,000 made up of pay of $466,000 in pay, long-term incentive scheme payments of $111,000, and pension contributions of $76,000.

A breakdown of revenues show that Ireland revenues accounted for $1.67bn while sales to “other” remained reduced to $1bn.

At the end of 2024, the firm’s accumulated profits totalled $286.6m. Shareholder funds totalled $321.67m.

Irving Oil also operates the separate Tedcastle group of companies it acquired in 2019.

Separate consolidated accounts for that business, Hillingdon Investment Co UC, show that pre-tax profits declined by 14% to $8.22m.

The profits take account of a revaluation loss of $7.5m. The drop in profits follows revenues dipping only marginally from $1.91bn to $1.90bn.

The directors state that they are satisfied with the performance of the group during the year.

Numbers employed at the business declined from 466 to 436, though staff costs increased from $24.6m to $25.48m.

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