Having lost billions for several years, the Statoil facility Mongstad is finally making money.
Profit before taxes was 3 billion NOK last year and profitability is also good this year, according to Dagens Næringsliv. The newspaper points out that profits last year equals a half ‘mong’, an informal term for budget overruns when the Mongstad refinery was expanded in the 1980s. Arve Johnsen, who was the CEO of Statoil then had to step down from his position when the overruns reached 6 billion – or in other words 1 mong.
From 2009 to 2013 the facility had losses and writedowns of around 17 billion, but over the past year, while things are tough for the rest of the industry is working on an incline, the prospects for the refinery have brightened.
– An important reason for the result in 2015 was that we had record regularity. Production was at 11.3 million tons. That is our highest output ever, refinery manager Rasmus Wille said. He notes that there is still excess capacity among European refineries and that some of them will have to close.
– We are working to ensure that Mongstad won’t be among those.
Source: NTB scanpix / Norway Today