Fuel and petrochemical sales from the UK's 204,000 b/d Stanlow refinery hit an 18-month high in December, the best monthly performance since the start of the pandemic, owner Essar Oil UK said today.
The firm did not provide figures but said demand is now at 95pc of pre-Covid levels. The Stanlow refinery near Liverpool in northwest England is a key part of the UK's downstream sector, supplying more than 16pc of the country's road fuels. The facility also resumed supplying fuel to the Irish market this month.
Like many refineries in Europe, Stanlow has been hit hard by the downturn in demand for refined products since the pandemic began. Essar Oil UK took advantage of an option offered by the UK government to defer VAT payments but had to negotiate a revised timetable to repay. It agreed a ‘time-to-pay' arrangement with UK tax authorities in April last year, which deferred £770mn ($1.05bn) of VAT. And in September, it agreed a new schedule "aligned" with its revenues.
The firm said its financial performance has strengthened of late and it is now generating earnings before interest, tax, depreciation and amortisation (Ebitda) at an annualised rate of around $300mn, which is close to the levels achieved in the five years before the onset of Covid-19.
The company said it secured some of the outstanding financing it requires in the fourth quarter of last year and has now paid off 80pc of its deferred VAT liabilities, keeping it up to date with the latest repayment schedule. It expects to raise the remainder of the financing it needs in the next couple of months.
