Skip to main content

Language: English / Gàidhlig

Loading…

Chamber and committees

Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

Filter your results Hide all filters

Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 4 May 2025
Select which types of business to include


Select level of detail in results

Displaying 707 contributions

|

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Gordon MacDonald

Good morning. I want to continue the discussion on the background to the decision to move towards closure, whether it be in May 2025 or later. You talked about macroeconomic challenges. Are there economic challenges that are impacting only the Grangemouth refinery, or are the same issues impacting the other five refineries in the UK and, indeed, those across Europe?

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Gordon MacDonald

When you cut from 210,000 barrels to 150,000, you must have thought that that 150,000 barrel demand was sustainable, at least in the short term.

You operate another plant at Lavera in France. You have talked about the demand in Europe, and you have said that you are exporting at a loss. Will those European customers now be served from the French refinery that you own, which is another old BP refinery?

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Gordon MacDonald

My final question is in two parts. First, I was not able to find your financial accounts for the year to December 2022. They are not available from Companies House. What was your financial position at the end of December 2022?

Secondly, has a final decision been taken to close the refinery? What would it take to keep it open for a longer period of time? You talked earlier about the capex of £40 million. Are there any other factors that we need to take into account to keep it open?

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Gordon MacDonald

Okay. Thanks very much.

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Gordon MacDonald

You talked about the substantial losses that were made in 2020 and 2021 due to the lockdowns. However, Rystad Energy highlighted that Russia’s invasion of Ukraine

“catapulted refining from famine to feast in term of margins.”

Was it a mistake for Petroineos to cut the site’s refining capacity by 30 per cent?

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Gordon MacDonald

You mentioned that current demand is for 150,000 barrels per day. When you close the refinery in five years’ time or whenever it happens to be, what will happen to that demand?

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Gordon MacDonald

If it is a no-loss company, how did you make substantial losses? I picked the losses up from the manufacturing company.

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Gordon MacDonald

What were the group profits?

Economy and Fair Work Committee

Petroineos Grangemouth

Meeting date: 13 December 2023

Gordon MacDonald

Right.

Economy and Fair Work Committee

Glasgow Prestwick Airport

Meeting date: 6 December 2023

Gordon MacDonald

I have a couple of final questions. First, you said that you have returned to profitability over the past four years; at what point do you intend to start paying dividends? Secondly, you have a loan debt of £43 million, and I notice that the interest is accruing in the background. It was £7 million-odd in the previous year, and it is now £9 million. When will that start to be repaid to the Scottish Government?