The spike in oil prices did nothing to improve business for the Irish unit of the Californian oil giant Chevron Texaco, which had an operating loss of €10 million last year despite increasing sales by more than 19.5 per cent to nearly €100 million.
The deficit in 2004 follows an operating profit of €18.52 million in 2003. Texaco (Ireland) Ltd, which supplies motor fuel to a network of 300 service stations, blamed the deterioration in its performance on tighter margins and a big increase in its pension contribution.
The firm has 40 staff. It owns 60 of the service stations in the Texaco network, although these are operating by managers under licence from the company. The remaining 240 outlets are independently owned and operated.
Accounts recently filed in the Companies Office do not provide a break-down of turnover from individual parts of the business.
While turnover rose to €997.1 million from €833.7 million, the accounts say that €419.94 million of its turnover in 2004 and €363.37 million in 2003 was attributable to excise duty on petrol and diesel. The pre-tax loss of €4.45 million in 2004 contrasted with a pre-tax profit of €17.89 million in 2003 ...
"Although rising commodity prices increased turnover, Texaco Ireland's 2004 results reflect the increase in competition and pressure on margins as well as a substantial pension fund contribution," said a spokesman for the company.
This statement was in line with the directors' report submitted with the accounts, which said that the company saw a "decline in gross margin due to a combination of market conditions and increased competition".
The Chevron Texaco Corporation, led by Dublin-born businessman Dave O'Reilly, did not take a dividend from the Irish subsidiary in 2004. It received a €5 million dividend in 2003.
According to the accounts, the Irish unit's pension contribution rose last year to €28.43 million from €10.08 million in 2003. The retained loss of €5.2 million brought the value of its profit and loss account down to €24.59 million at the end of 2004 from €29.79 million a year earlier.
Expenditure on distribution and marketing accounted for €32.23 million of operating costs totalling €67.2 million and the remainder went on administrative expenses.
The staff received €3.41 million in wages and salaries, while the value of the directors' emoluments fell to €452,000 from €530,000. An unnamed former director received €311,000 in compensation for loss of office.
