A FIRM behind a mothballed £250m refinery says it has improved profits after encountering fewer maintenance issues.

CropEnergies AG says lower repair costs have mitigated falling prices and sales.

The business runs the Ensus bioethanol plant in Wilton, near Redcar, which halted production early last year after being dogged by poorer selling values and the sluggish oil price.

However, the company has since made modifications to improve the site’s reliability and energy efficiency, and officials say work will restart next month after trial runs.

According to a financial update for the period to June 21, steadying Ensus, allied to lower material prices, helped CropEnergies’ bottom line.

A spokesman said while revenues in the first quarter dropped from £152m a year ago to £129m, mainly due to lower bioethanol prices and sales losses owing to Ensus, operating profits increased 42 per cent to £15m.

He added the business now expects full year revenues of up to £537m and operating profits of up to £62m, with the latter higher than previously anticipated.

Ensus uses wheat to create bioethanol, which is added to petrol.

The remaining protein and grain is used to make thousands of tonnes of animal feed and carbon dioxide for the soft drinks and food market every year.

However, the site has been temporarily closed since February last year and a number of its 100-strong team were previously let go amid the uncertainty.

The base has endured a difficult history, with low demand, poor harvests, rising energy costs and even a bad smell forcing postponements and hindering production since it started in 2010.