Doubts About Figures – Union Questions Financial Situation of Grangemouth Refinery

Amid the discussions about the future of the Grangemouth refinery, Petroineos, a joint venture between PetroChina and Ineos, is under criticism from a leading union representative. The controversy ignites due to conflicting accounts of the site's financial situation. Petroineos had announced plans to close the refinery next year due to economic difficulties and convert it into a fuel import terminal, potentially putting 400 jobs at risk. The company's reports recently showed daily losses of up to £385,000 and forecast a loss of £150 million for this year. Derek Thomson, regional secretary of Unite Scotland, however, clearly disputes this narrative. In a session of the Economy and Fair Work Committees, he stressed that the refinery has been a 'relatively profitable and financially healthy' operation over the years. A central point of contention is the year 2020, which is classified as an outlier due to a one-time loss of £344 million—primarily influenced by reassessments of fixed assets. Over the period from 2014 to 2022, excluding 2020, the refinery achieved a net profit of £49 million, according to Thomson. A spokesperson for Petroineos counters that detailed financial information has been comprehensively submitted to both the Scottish and British governments, including thorough data transmission on recent developments.