Chevron reports loss of almost €5m on rising turnover

FUEL MERCHANT Chevron (Ireland), which distributes under the Texaco and Texoil brands, suffered a €4.8 million loss last year, despite posting increased turnover.

Figures lodged at the Companies Office show the group had turnover of €1.42 billion for 2008, up 9 per cent on the previous year. Turnover included excise of €396.8 million payable to the Revenue Commissioners.

In a report attached to the accounts, the company’s directors said its gross margin had weakened “due to a combination of conditions and increased competition, resulting in a decline in sales volumes”.

In 2007, Chevron recorded a pretax profit of €36 million.

The directors highlighted a number of risks facing the company, including volatile oil prices and “the company’s ability to recover increases from customers”.

They also raised “the general economic uncertainty in the domestic market”, and pointed to €6.4 million in cost savings recorded during the year.

Chevron (Ireland) is ultimately owned by California-based Chevron Corporation, which is headed by Dubliner Dave O’Reilly.

A breakdown of the figures shows that Chevron (Ireland)’s cost of sales last year was almost €1.4 million in 2008, compared to €1.25 million for the previous 12 months.

The 2007 numbers included a €24 million gain related to the disposal of assets while the comparable figure for 2008 was €7,890.

The company, which sells through 230 Texaco-branded service stations, also did well in 2007 from currency movements, recording a foreign-exchange gain of €9.2 million.

Currencies did not work in its favour last year, however, leading to an equivalent loss of almost €2 million.

Shareholders’ funds at the end of 2008 amounted to €77.8 million, down from €107.5 million a year previously.

The company incurred €4.1 million in staff costs last year, down from €4.7 million.

Its pension was in the red by €28.8 million on an actuarial basis, having been in profit by €3.2 million 12 months earlier.