TOR returns to profitability after a decade, clears six-year audit backlog

The Tema Oil Refinery (TOR) has recorded a major turnaround in its financial and operational performance, returning to profitability for the first time in a decade and clearing a six-year backlog of audited financial statements.

According to a communiqué issued by the State Interests and Governance Authority (SIGA), the refinery posted a Profit Before Tax of GH¢1.24 billion in 2025 and successfully completed and submitted audited financial accounts covering the period from 2019 to 2025.

SIGA described the achievements as a significant milestone in TOR’s recovery efforts, noting that the completion of the outstanding audits addresses a longstanding gap in financial reporting that had affected the refinery’s governance standing and complicated efforts to improve its financial position.

The authority attributed the progress to improved corporate governance, strategic leadership, and operational reforms implemented by the refinery’s management.

“SIGA recognises that these achievements are the results of deliberate strategic leadership, strengthened corporate governance practices, operational reforms, and the unwavering dedication of the Board, Management, and staff of TOR,” the statement said.

Among the key financial gains highlighted were a foreign exchange gain of GH¢1.3 billion arising from prudent financial and forex management strategies, an increase in associate profit to GH¢155 million, and a reduction in trade and other payables from GH¢7.1 billion to GH¢5 billion.

The refinery also recorded improvements in receivables management, with receivable days falling from 1,099 days to 652 days, reflecting enhanced debt recovery and collection efforts.

SIGA further noted that operational improvements played a critical role in the refinery’s financial recovery. These included the successful completion of turnaround maintenance works and the processing of approximately 600,000 barrels of crude oil during the year.

TOR resumed crude oil processing in December 2025 following extensive maintenance on its Crude Distillation Unit, ending several years of operational inactivity.

“The Authority also acknowledges the important role played by the Board in supporting management’s recovery agenda, particularly through initiatives relating to debt restructuring, receivables recovery, cost containment measures, and continued investments in critical refinery infrastructure,” SIGA stated.

Despite the progress made, the authority cautioned that significant challenges remain, including liquidity constraints, accumulated deficits, and the need for continued balance-sheet restructuring.

“SIGA therefore urges the Board and Management of TOR to sustain the current momentum, deepen operational efficiencies, strengthen corporate governance standards, and accelerate efforts toward achieving long-term profitability, competitiveness, and national energy security,” the statement added.

The commendation comes as TOR continues to achieve key operational milestones. On May 27, the refinery received approximately one million barrels of Bonga crude oil aboard the Motor Tanker MT Cap Felix under a tolling arrangement involving Fujairah/Triangle Commodities Trading, which sourced the cargo from Shell.

The low-sulphur Bonga crude, produced from offshore fields in Nigeria’s Niger Delta, was selected for its compatibility with TOR’s hydroskimming refinery configuration and is expected to produce petroleum products including LPG, gasoline, diesel, kerosene, aviation turbine kerosene, and fuel oil for the domestic market.

TOR Managing Director Edmond Kombat was also recognised at the 10th Ghana CEOs Summit in Accra, where he received the Outstanding Public Sector Leadership Award from the Ghana CEOs Network in recognition of his role in driving operational reforms and institutional transformation at the refinery.

The refinery’s resurgence comes at a time of heightened volatility in global oil markets, with supply disruptions and trade uncertainties contributing to rising crude prices and stronger refining margins.

Industry analysts argue that a consistently operational TOR could help reduce Ghana’s exposure to imported fuel price fluctuations while strengthening national energy security. Operating at between 45 and 60 percent of national fuel demand, the refinery could potentially save the country hundreds of millions of dollars in refined product import costs while boosting domestic fuel supply resilience.

Prince Antwi

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