Ghana Oil Company Limited (GOIL) recorded an impressive performance in 2016 despite increasing competition and a fall in general consumption of fuel. The largest indigenous Oil Marketing Company (OMC) increased its profit after tax from GH¢22.2 million in 2015 to GH₵35.3 million, representing an increase of 58.7 per cent.
Its turnover also increased from GH¢2 billion in 2015 to GH¢2.6 billion in 2016, representing an increase of 26.95 per cent.
This was announced at the 48th Annual General Meeting in Accra by the outgoing Board Chairman, Professor William Asomaning.
The company, which declared a dividend of GH¢0.025 cedis per share to shareholders, also welcomed a new board of directors headed by a former Minister of State, Mr Kwamena Bartels.
Briefing shareholders on the performance of the company in the year under review, Prof. Asomaning said, “GOIL achieved 95.8 per cent of its fuel sales target in spite of the tight competition in the industry.
“Despite a fall of about 5.6 per cent in national consumption of fuel products, the company grew fuel sales by 9.8 per cent during 2016 and LPG sales grew by 30 per cent compared to 2015. Lubricant sales also improved by 11 per cent compared to 2015.
He noted that GOIL remains the biggest OMC with a market share of 18.2 per cent.
Prof. Asomaning stated that the right issue undertaken by GOIL in 2016 raised additional capital of GH¢150 million which enabled the company to undertake key projects, among which are the fully automated three-tank storage facility at the Takoradi Harbour to store and supply Marine Gas Oil (MGO), to meet the ever-increasing demand by supply vessel, the construction of a bitumen plant and lubricant blending plant in Tema.
“Our company also contributed GH¢617 million, GH¢14.74 million and GH¢6 million as customs, duties and levies, income tax and dividend payment, respectively,” he added.
No subsidies from government
The outgoing board chair also noted that the company achieved these successes without any subsidies from government contrary to assertions by a section in the industry.
“The fact is that government owes GOIL due to supplies to the security services. I am sure if the subsidy story were true, government would rather use the funds to pay up its debts than subsidise a commercial enterprise like GOIL,” he pointed out.
He said what worked well for the company was its alliance with the Bulk Oil Storage and Transportation (BOST), which led to the stabilisation of the market prices for the benefit of its customers.
“The combination of good financial and operating strategies contributed to our company’s success. This performance was as a result of an increase in the number of active retail stations, improvement in service delivery, stringent measures to operate in a safe environment and improved quality control measures,” he indicated.
New board of directors
The shareholders of the company also approved the new board of directors who had been appointed by government.
The Managing Director and Group Chief Executive Officer CEO of GOIL, Mr Patrick A.K. Akorli, assured shareholders that his team would continue to work harder with the new board to increase the company’s market share.
The new board of directors, who replaced the seven retiring directors, has Mr Kwamena Bartels as Chairman. The other members are Mr Kwame Osei-Prempeh, Mr Beauclerc Ato Williams, Mrs Beatrix Agyeman Prempeh, Mr Stephen Abu Tengan, Mr Robert Amankwah and Mrs Rhoderline Baafour-Gyimah.