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Prax welcomes strong operating profit at Lindsey Oil Refinery as losses cut in turnaround year

Operating profits have surged at Lindsey Oil Refinery in its second year under Prax ownership, with overall losses significantly reduced.

The Humber Bank plant, bought from French giant Total in early 2021 by the rapidly expanding British firm, saw revenues hit £5.8 billion, up 28 per cent from £4.5 billion. It came as commodity prices soared due to the Russian invasion of Ukraine.

It led to an operating profit of £31.6 million, up from £4.5 million for the team with expanding interests from oil field to forecourt Overall losses were substantially reduced from £18.8 million to £4.8 million, in a year with the firm’s first major planned shutdown taking place.

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In the strategic report filed alongside the accounts, Prax chair and chief executive Sanjeev Kumar Soosaipillai, said: “Our refinery business has experienced a period of high margins following the volatility in commodity prices resulting from the Ukraine situation, but has also had to adapt to a changing feedstocks with sanctions being imposed on trade with the Russian Federation. Although this has not impacted the crude oil grades used at the refinery, adjustments to production programmes to reflect the unavailability of Russian-sourced atmospheric residue, vacuum gas oil and diesel were implemented successfully.”

He said the “first major maintenance event” known as a turnaround and inspection – since the February 2021 acquisition “was successfully executed over a 45-day mechanical window over June and July 2022” with £14.6 million spent, in addition to £200,000 ahead of the period.

A further £36.6 million was spent on “maintaining the production units and other assets to improve the reliability of the plant and machinery”.

He told how a four per cent uplift in availability of production units, from 88 per cent to 92 per cent, was achieved through the T&I, corresponding to an increase in crude throughput of 1,400 barrels of oil.

Headcount was 413, up four – all in production – in 2022.

Post year-end, Luc Smets has left the position of general manager, with Edmund Stobseth-Brown appointed in an interim role.

Across the fence, Humber Refinery contributed to an increase in turnover of 63 per cent for Phillips 66 Ltd, the US giant’s UK arm, up from $17.7 billion (£14.5b) to $29 billion (£23.8b). Profit was up from $243 million (£199m) to $1.4 billion. (£1.1 billion).

Original artice – https://business-live.co.uk/all-about/yorkshire-humber

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