Rev­enues surge at Shell Ire­land as Cor­rib boosts pro­duc­tion

Irish Independent - Business Week - - FRONT PAGE - Gor­don Dee­gan

REV­ENUES at Shell Ire­land last year in­creased by 41pc to €257.7m as pro­duc­tion from the Cor­rib Gas field ramped up.

New ac­counts show that the in­creased rev­enues con­trib­uted to pre-tax losses at Shell E&P Ire­land Ltd more than halv­ing, go­ing from €187m to €88.5m.

The losses mainly arise from non-cash de­pre­ci­a­tion costs of €283m.

The com­pany last year re­ceived a tax credit of €14.35m re­sult­ing in €200m the com­pany has re­ceived in tax cred­its from the project since its in­cep­tion. The €14.35m in tax cred­its last year con­trib­uted to the com­pany record­ing a post-tax loss of €74.23m. The field con­trib­utes 60pc of Ire­land’s nat­u­ral gas re­quire­ments and last year, Shell E&P Ire­land in­vested €130,000 in 69 com­mu­nity or­gan­i­sa­tions in the Er­ris area through a Lo­cal Grants Pro­gramme. Last year, Shell Ire­land dis­posed of its share­hold­ing in the project to the Cana­dian Pen­sion Plan In­vest­ment Board (CPPIB) which has agreed a strate­gic part­ner­ship with Ver­mil­ion in a deal po­ten­tially worth as much as €1.08bn. Ver­mil­ion al­ready owns 18.5pc of the field and will take over as op­er­a­tors of the project from Shell Ire­land. The deal is ex­pected to close be­fore the end of this year. Num­bers em­ployed by Shell Ire­land last year re­duced from 118 to 102 with staff costs re­duc­ing from €19.8m to €16m. Di­rec­tors last year shared €1.1m in pay and pen­sion pay­ments.

Fu­el­ing sales:

A rise in rev­enue helped Shell E&P Ire­land halve pre-tax losses to €88.5m

Fexco CEO De­nis McCarthy

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