THE revitalisation of a North-East refinery has helped drive an operator’s profits to record levels and could see shareholders receive a higher payout.

CropEnergies says work at the Ensus bioethanol plant has delivered fresh impetus to its finance sheet.

Bosses say the site, formerly forced into operational postponements, has been part of wider production and sales improvements that pushed group operating profit to a new high of £83m in the year to February 28.

Revenues also increased, from £613m to £680m, with officials adding the recovery means the organisation is now able to put forward proposals to double its dividend to 0.25p per share.

The potential change comes after a good period for Ensus, which Germany’s CropEnergies runs as a UK subsidiary, as it rebounds from issues such as falling prices and oil’s plummeting value that previously forced bosses into job cuts.

The factory, based at Wilton, near Redcar, uses wheat to create bioethanol that is added to petrol, with remaining protein and grain used to make animal feed and carbon dioxide for the soft drinks and food market.

Earlier this year, bosses said Ensus’ presence, alongside that of sister European plants and higher market prices, meant the business was well placed to be debt-free for the first time in its history.

Speaking yesterday, a spokeswoman confirmed it was continuing to make progress, which was reflected in its dividend plan.

She added: “CropEnergies achieved revenues of €802 (£680m) in the financial year and operating profit reached a record of €98 (£83m).

“The increase resulted mainly from higher production and sales volumes.

“Subject to the supervisory board deciding accordingly, a dividend - double that of the previous year - will be proposed to the annual general meeting on July 18.”

Ensus has endured a chequered past, with falling prices and oil’s plummeting value previously forcing bosses into job cuts.

Low demand, poor harvests, rising energy costs and even a bad smell have also forced postponements and hindered production since it started in 2010.