Grangemouth refinery operator Petroineos makes £16m loss

The Grangemouth refinery is owned by Petroineos Manufacturing Scotland

The operator of the Grangemouth refinery made a £16.3m loss in 2014, newly lodged accounts have shown.

Petroineos Manufacturing Scotland incurred the eight-figure loss in the year to 31 December despite increasing turnover to more than £240m.

The firm's strategic report said "the longer term outlook remains challenging in the current economic climate".

It also noted that a £32.8m "cost reduction challenge" was completed in 2014.

The firm's annual report, lodged with Companies House, noted that Ineos and Petroineos now operate as separate businesses, but remain integrated.

It said 2014 was "a busy year", with the overhaul of the plant's Hydrocracker Complex taking approximately half a million man-hours to complete.

'Difficult conditions'

Petroineos also said "trading conditions in the refining sector continued to be difficult" due to slow growth in Europe and competition from imports from other regions.

That year, the firm made a loss of more than £20m, and while total turnover increased from £215m in 2013 to £240m in 2014, the business still lost £16,396,000. As such no dividend was paid to shareholders.

The future of the petrochemical complex was in doubt in 2013, with Ineos at one point announcing the plant would close in the midst of a dispute with unions and staff.

The director's report submitted to Companies House said the company was reliant on parent firm Petroineos Trading Limited to meet the needs of the business in terms of financial risk management.

The Grangemouth refinery processes about 210,000 barrels of crude oil per day, providing fuel to Scotland, the north of England and Northern Ireland.