Profits at the firm which operates Ireland’s only oil refinery at Whitegate in Co Cork increased 10 per cent to $128.4 million (€124.5m) in 2023. Accounts for Irving Oil Whitegate Holdings Ltd also reported that revenues decreased by 3.5 per cent from $3.397 billion to $3.275 billion.
In 2023 the group recorded a 27 per cent drop in pretax profits to $153 million. However, the group recorded the increase in post-tax profits as its corporation tax charge was almost a quarter of its 2022 corporation tax charge of $92.78 million. In 2023 the group’s corporation tax bill was $24.77 million.
The largest component of the corporation tax charge at $76 million concerns the European Union (EU) energy windfall tax, the Temporary Solidarity Contribution that was introduced as an emergency intervention by the EU in October 2022 to address high energy prices as a result of the war in Ukraine, with consumers being hit by much higher bills for gas and electricity. However, the group reduced its overall tax bill in 2023 by $43.95 million due to adjustments in respect of prior years.
The group’s cost of sales declined from $3.17 billion to $3.09 billion that included employee costs rising from $30.88 million to $36.4 million. Numbers employed increased from 228 to 235 in 2023.
The group recorded a gross income of $176.72 million in 2023 which was a 21 per cent reduction on the gross income of $223.34 million for 2022. Non-cash depreciation and amortisation costs of $19 million and a foreign exchange loss of $12.99 million further reduced the group’s profits.
Whitegate, which opened in 1959, can process up to 75,000 barrels of oil a day and plays a critical role in the country’s energy infrastructure, supplying 40 per cent of the petroleum needs of the country. Irving Oil also operates the separate Tedcastle group of companies it acquired in 2019.
In a note with the accounts the directors said that “refining margins in Europe remained strong through 2023, but did see a decline in the latter half of the year. Margins were supported by European refining capacity that was short distillate production, exacerbated by pandemic-era shutdowns.
“Margins were below the highs of 2022 as supply trade flows into Europe continued to adapt to the import ban on Russian oil. Gasoline demand decline has stabilised as gasoline electric hybrids replace smaller diesel passenger cars,” the note said.
At the end of 2023 the firm’s accumulated profits totalled $261.1 million, while shareholder funds totalled $296 million.
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