IRISH-OWNED fuel provider Topaz Energy increased turnover by 20 per cent and more than doubled its operating profit in its first full year of ownership of the former Statoil and Shell networks of petrol stations.

It also paid off €15 million in debt to Anglo Irish Bank relating to these acquisitions.

Accounts for Topaz Energy Group Ltd for the year to the end of March 2008 show that its revenues were just shy of €3 billion in the 12-month period. This compared to turnover of just under €2.5 billion in fiscal 2007.

The revenue performance and synergies derived from the integration of the Shell and Statoil businesses helped Topaz to increase its earnings before interest, tax, depreciation and amortisation by 61 per cent to €45 million.

Depreciation and amortisation costs of €16.4 million left Topaz with an operating profit of €28.6 million last year, more than double the level of a year earlier.

Topaz’s interest payments last year – relating to the acquisitions of the Shell and Statoil service stations – more than doubled to €33.4 million. The fuel group booked a €5.2 million profit on property disposals last year, compared with a substantial €39.2 million in 2007.

A €10.5 million exceptional gain in 2007 relating to a restructuring of the business and the amortisation of negative goodwill was not repeated last year.

When these items are factored into the results, Topaz’s pretax profit declined to €2.6 million in fiscal 2008 from €48.8 million in the previous reporting period.

Commenting on the results, chairman Neil O’Leary said Topaz’s performance in the current financial year, which ends on March 31st, has been “satisfactory”. He conceded the strong sales and profit performance of last year was unlikely to be repeated in the current period.

“Our performance in 2009 will reflect the reality of the economy,” he said, adding that the first half of the current financial year was affected by volatile fuel prices and the second half by the effects of the recession.

Topaz operates about 350 forecourts across Ireland, of which 110 are company-owned. It also runs seven oil terminals and provides home heating fuel to 200,000 homes.

Mr O’Leary said the business had benefited substantially from the €50 million rebrand in February 2007 under the Topaz name. “We got a significant uplift from the launch of the new brand,” he said.

Mr O’Leary said Topaz had reduced the opening hours of some service stations and reduced its part-time headcount in response to the economic slump. It has also squeezed suppliers to achieve savings across the group.

No pay cuts have been introduced at any level of the business.

He said bonuses paid in the current year would be “impacted” by the overall financial performance of the company.

Mr O’Leary said the focus within its forecourt retail shops would switch away from so-called “breakfast-roll man” and focus instead on a quality “food-to-go” offering for a wider customer base.

“The opportunity of tomorrow is in the weekend and evenings and converting our female traffic into food ,” he added.

Topaz’s accounts show that shareholders’ funds stood at €32.2 million at the end of March 2008.

No dividend was paid to its backers, who include successful businessmen Denis O’Brien and Gerry Barrett.

Topaz’s 1,293 staff earned €38.7 million between them last year, while executives received €1.14 million in pay and fees.

Topaz recently appointed finance head Eddie O’Brien as chief executive, in succession to Danny Murray.