Ghana Oil Company Limited (GOIL PLC) reported a 85% surge in net profit for 2024, climbing to GH¢101.3 million (GH¢0.259 per share) from GH¢54.7 million (GH¢0.140 per share) in 2023, even as revenue fell by 6% year-over-year to GH¢19.3 billion.
The unaudited financial statements, released Tuesday, revealed a mixed performance marked by improved cost management and expanding margins, alongside significant cash flow challenges and rising debt obligations.
Gross profit rose 16% to GH¢819.1 million, driven by a sharper decline in cost of sales (-7%) compared to the drop in revenue. Administrative and selling expenses, however, grew by 9.5% to GH¢638.5 million, reflecting inflationary pressures and operational costs. The company’s operating profit before financial charges jumped 38% to GH¢244.8 million, though higher interest payments on loans—up 22% to GH¢109.7 million—trimmed pre-tax gains.
A closer look at the balance sheet shows total assets expanded by 21% to GH¢4.87 billion, fueled by a GH¢842 million spike in accounts receivable, now at GH¢2.28 billion. Critics speculate this could strain liquidity, as GOIL’s cash reserves dwindled to GH¢201.4 million, down from GH¢210.7 million in 2023. Meanwhile, current liabilities surged to GH¢3.41 billion, with accounts payable accounting for GH¢2.92 billion of that total.
Cash flow trends painted a stark picture: net cash outflows from operations hit GH¢380.6 million, reversing 2023’s GH¢50.9 million inflow. Executives attributed this to delayed customer payments and increased capital expenditures, including GH¢65.4 million invested in fixed assets. A GH¢642 million medium-term loan provided temporary relief, but repayments of existing debt and a GH¢21.7 million dividend payout further pressured finances.
GOIL’s equity grew to GH¢928.1 million, up 12%, bolstered by retained earnings. The company also highlighted strategic investments in subsidiaries like Goenergy Ghana Limited and Gobitumen Limited, though two subsidiaries—GOIL Upstream Limited and GO Financial Services Limited—remained unconsolidated due to “immaterial” financial impact.
“Our focus on operational efficiency and strategic growth initiatives continues to yield results,” said CEO Jacob Kwabena Adjel in a statement, emphasizing the profit surge despite “challenging market conditions.” Analysts, however, caution that liquidity risks and reliance on borrowing could test GOIL’s resilience in 2025, particularly if receivables remain unpaid or fuel price volatility persists.
The results underscore GOIL’s balancing act: leveraging scale to boost profitability while navigating the tightrope of cash flow management in Ghana’s competitive energy sector. Shareholders will await audited figures later this year for further clarity on the company’s fiscal health.
