By Jibril Abdul Mumuni_
Accra, June 30, GNA – Foreign exchange gains and prudent financial management have driven the Tema Oil Refinery (TOR) to profitability after many years of decline.
Mr Edmond Kombat, the Managing Director of TOR, announced at the company’s 18th Annual General Meeting (AGM) in Accra that the refinery recorded a significant profit in 2025, largely due to favourable currency movements and disciplined financial management.
He explained that the appreciation of the Ghana cedi during the 2025 financial year had a major positive impact on the refinery’s financial position, resulting in substantial foreign exchange gains.
“The primary driver of the 2025 profit is a foreign exchange gain.” Mr. Kombat stated.
He noted that the development marked a sharp reversal from the previous year, when the refinery recorded significant foreign exchange losses.
According to him, the gains were not incidental but reflected deliberate efforts by the refinery’s treasury team to effectively manage foreign currency exposures in a volatile global market environment.
The Managing Director said global oil market conditions and the recovery of the domestic economy also contributed to improved refinery margins during the year under review.
He noted that the Ghanaian economy recorded significant improvements in 2025, including a sharp decline in inflation and a strong rebound of the local currency, which supported operational performance at TOR.
Mr. Kombat indicated that revenue from operations also improved, driven by the resumption of refinery activities following the successful maintenance of key processing units.
He said TOR’s revenue increased by about 18 per cent in 2025, representing the strongest performance in a decade, as increased throughput from the Crude Distillation Unit boosted output.
Despite the impressive turnaround, the Managing Director cautioned that the refinery’s financial recovery remained fragile, as underlying structural challenges, such as accumulated losses and high debt levels, continued to weigh on its balance sheet.
He stressed that sustained profitability would depend on continued operational efficiency, improved cost management, and the restructuring of existing liabilities.
Mr John Abdulai Jinapor, Minister of Energy and Green Transition, in his remarks, acknowledged the refinery’s financial turnaround and commended management for the progress made.
He observed that TOR had recorded losses over several years and described the return to profit as a significant milestone that demonstrated the impact of improved leadership and management discipline.
Mr. Jinapor noted that macroeconomic improvements, particularly lower borrowing costs and currency stability, had created a more favourable environment for state-owned enterprises to operate.
He said the government was committed to supporting TOR to sustain its recovery, including measures to strengthen its balance sheet and enable it to access financing for future operations.
The Minister emphasised that a financially viable TOR was critical to Ghana’s energy security, job creation, and economic growth, as the refinery played a central role in the supply of petroleum products to the domestic market.
He further indicated that the government was exploring options to support the refinery, including its debt obligations and improve its overall financial viability.
GNA
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Edited by Samuel Osei-Frempong