Financial statements from Grangemouth owner give ‘distorted picture’, says union

A commercialized national authoritative has questioned fiscal statements produced by the proprietor of the Grangemouth refinery, saying they contiguous a “distorted picture”.

Petroineos announced successful September plans to adjacent the refinery successful the 2nd 4th of adjacent year, citing the plant’s commercialized viability, with it owed to pivot into a substance import terminal, putting 400 jobs astatine risk.

According to the steadfast – a associated task betwixt PetroChina and Ineos – the refinery was losing up to £385,000 per time earlier this period and was connected way for a £150 cardinal nonaccomplishment this year.

Unite's presumption is that Petroineos has fixed a distorted representation of its finances. We don't stock the communicative that it is simply a loss-making site

Derek Thomson, Unite

But Derek Thomson, Unite Scotland’s determination secretary, told MSPs the tract was “a comparatively profitable and financially steadfast operation”.

The national “disagrees” with Petroineos’s claims astir the fiscal viability of the refinery and said it was important not to presumption a azygous twelvemonth successful isolation, Mr Thomson said during a gathering of the Economy and Fair Work Committee connected Wednesday.

This year, helium told the committee, had been blighted by issues relating to the plant’s hydrocracker – a portion which produces pitchy fuel, diesel and liquefied petroleum gas.

“Unite’s presumption is that Petroineos has fixed a distorted representation of its finances,” helium said.

Where determination are recorded losses specified arsenic the anomaly twelvemonth of 2020, this is down to decisions by the institution to people down its assets and truthful a nonaccomplishment connected their portion to invest

Derek Thomson, Unite

“We don’t stock the communicative that it is simply a loss-making tract and wherever it has made losses, not needfully nett losses, it’s down to a fig of factors.”

Between 2014 and 2022, the national authoritative said, the refinery made a £49 cardinal nett profit, if 2020 was excluded.

“There is successful the company’s accounts what we would picture arsenic an ‘anomaly’ twelvemonth for 2020, which identifies a nett nonaccomplishment of £344 million,” helium continued.

“The nett nonaccomplishment is chiefly owed to a re-evaluation of assets.

“This one-off immense nett nonaccomplishment distorts the wide representation betwixt 2014 and 2022.”

He added: “The bulk of this alleged grounds nett nonaccomplishment has travel from the worth nether the plant and machinery section, which betwixt 2019 and 2020 seemingly mislaid 80% of its worth and successful 2021 accounts is worthy little than 10% of its value.”

Mr Thomson went connected to archer MSPs the representation astatine the refinery was “one wide of a comparatively profitable and financially steadfast operation”.

“Where determination are recorded losses specified arsenic the anomaly twelvemonth of 2020, this is down to decisions by the institution to people down its assets and truthful a nonaccomplishment connected their portion to invest,” helium said.

Claims astir the fiscal stableness of the refinery were made successful a study shared with the committee but not released publicly.

A missive from Unite wide caput Sharon Graham to Energy Secretary Ed Miliband this week called for an autarkic reappraisal into the refinery’s finances.

Mr Thomson went connected to question wherefore the hydrocracker and hydrogen units connected the tract were not operating astatine afloat capacity.

In an quality astatine the aforesaid committee past week, Iain Hardie, Petroineos’s caput of ineligible and outer affairs, said the hydrocracker unsocial being operational could trim the company’s losses from 200 cardinal US dollars (£158 million) to 100 cardinal dollars (£79 million).

The portion has been offline since past April, contempt 3 attempts to revive it, with Mr Hardie saying further tries were rejected owed to information concerns.

The workforce's presumption is that the hydrocracker is acceptable for purpose, it's conscionable been a determination not to restart it

Derek Thomson, Unite

But Mr Thomson claimed to person grounds that the 3rd effort was palmy for a time, earlier it “tripped”.

He further claimed that determination was thing “inextricably wrong” with the hydrocracker.

“The workforce’s presumption is that the hydrocracker is acceptable for purpose, it’s conscionable been a determination not to restart it,” helium said.

“Which I telephone into question arsenic a viable institution decision, due to the fact that wherefore would you instrumentality disconnected your biggest merchandise and profit-making instrumentality implicit a play of clip that’s going to lend importantly to your losses?”

Petroineos has been contacted for comment.