Ghana Oil Company annual profit jump 29% to US$18.25m

GHANAGhana Oil Company (GOIL), Ghana’s largest oil marketing company, has recorded a 29% rise in profit after tax in the 2019 financial year.

A report by Ghana Web indicated that the oil marketers profits stood at US$18.25 million (about GHc105.5 million) at the end of the 2019 financial year.

GOIL according to Ghana Web also recorded 9.66% jump in annual sales during the year under review.

Addressing shareholders at the company’s 51st AGM held virtually in Accra, Board Chairman Kwamena Bartels disclosed that GOIL’s growth in sales volume of fuel was higher than industry growth rate for the first time in many years.

As a result of the impressive performance, The Board of Directors recommended the payment of dividend of GHc0.045 per share, as against GHc0.042 in 2018.

Based on the number of GOIL’s issues shares, the dividend pay-out will amount to GHc17, 633,841(about (US$3 million) for the year ended 31st December, 2019.

GOIL Board Chair told shareholders that the main drivers behind the growth, were not the sale of the traditional products, Diesel XP and Super XP, but rather the sale of mining diesel, bunkering and aviation fuel.

Earnings per share moved from GHc0.209 to GHc0.269, while total assets increased from 1.345 billion cedis to approximately 1.716 billion cedis.

Explaining the reason for the dividend declaration, Kwamena Bartels said the company has embarked on projects that have the potential to yield higher gains in the future and therefore decided to retain a considerable amount of the net earnings for 2019 to help finance the projects.

The Group CEO/Managing Director of the Company, Mr. Kwame Osei-Prempeh assured shareholders that the future prospects of the company remained bright.

He expressed hope that as the world gradually gets rid of COVID-19, the sale of non-traditional products would continue to increase overall sales as experienced during the year 2019.

He revealed to shareholders that the Bitumen project embarked upon by the company was ongoing and would become operational during the year 2021.

Work regarding the construction of a Gas Cylinder Refilling plant has also started in earnest and the company hopes to complete the project by 2021.

Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy and more. SUBSCRIBE HERE

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.