ESSO IRELAND, the Irish arm of international energy giant Exxon Mobil, last year sustained a pre-tax loss of €7.7 million, in spite of revenues climbing to €654 million.

Accounts just filed with the Companies Registration Office for the company, which distributes and sells oil through its network of petrol stations, show that a €1.3 million write-down in the value of a retail site contributed to the loss.

Revenues increased by 10 per cent to €654 million from €595 million in 2010. The 2010 loss recorded compares with a €9.6 million loss for the previous year.

“The business climate in Ireland has continued to be extremely challenging,” the directors of the company said in the accounts.

“Despite this, turnover increased by 10 per cent but at the expense of gross margin. Continued vigilance has ensured that other costs have been reduced despite inflationary pressures.”

The cost of sales increased to €622 million from €556 million, while distribution costs decreased to €31.9 million from €37.8 million. Administrative expenses fell to €4 million from €4.6 million.

Operating losses increased by 16 per cent to €4.2 million. A €1.7 million gain on the sale of tangible fixed assets reduced the company’s losses to €2.5 million.

However, interest payable of €3 million and other finance expense of €2 million increased the company’s losses to €7.7 million. The loss also takes account of a non-cash depreciation cost of €4.7 million.

Tax paid of €1.4 million resulted in the company’s losses increasing to €9.2 million.

The company paid no dividend last year and the company’s accumulated profits at the end of last year were €17.9 million.

Shareholder funds stood at €25.8 million at the end of last year.

The company employed an average of 24 people in distribution and marketing.

Payments to directors increased from €258,000 to €288,000.

The company recorded a gain of €6 million on its pension scheme in 2010.