TOR clears six-year audit backlog, records GHS 1.24 billion profit

Ghana’s Tema Oil Refinery (TOR) has successfully cleared a six-year backlog of audited financial statements, covering the period from 2019 to 2025. The state-owned refinery also reported a significant Profit Before Tax (PBT) of GHS 1.24 billion in 2025, marking its return to profitability for the first time in a decade.

These achievements have earned commendation from the State Interests and Governance Authority (SIGA). SIGA highlighted TOR’s renewed financial reporting compliance and improved institutional performance. The authority attributed the progress to stronger corporate governance, strategic leadership, and operational reforms implemented by the current management team.

This financial turnaround and audit clearance fit into Ghana's broader economic narrative of improving the performance of state-owned enterprises. Data from the Ministry of Finance consistently highlights the financial strain SOEs often place on the national budget. TOR’s previous struggles, including prolonged operational inactivity, exemplify these challenges. Its current recovery could reduce fiscal burden and enhance energy security.

SIGA noted that these gains 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." This statement underscores the critical role of strong leadership in reviving struggling state entities.

Going forward, the market will closely watch TOR's ability to maintain this positive momentum. Decision-makers will focus on how TOR addresses its remaining challenges, including liquidity constraints and accumulated deficits. Continued balance-sheet restructuring will be key to sustaining long-term profitability and reducing Ghana’s reliance on imported refined petroleum products.

Financial improvements cited by SIGA include a foreign exchange gain of GHS 1.3 billion. This gain resulted from effective financial and forex management strategies. Associate profit also grew to GHS 155 million. TOR reduced trade and other payables from GHS 7.1 billion to GHS 5 billion, showing better debt management. Receivables management also improved, with receivable days falling from 1,099 days to 652 days.

Operational improvements also underpinned the financial recovery reported by SIGA. These included successfully completing Turnaround Maintenance activities. TOR also refined approximately 600,000 barrels of crude oil during 2025. The refinery resumed crude processing in December 2025. This followed extensive maintenance on its Crude Distillation Unit, ending several years of operational inactivity.

SIGA acknowledged the Board's crucial role in supporting management's recovery agenda. This included initiatives for debt restructuring and receivables recovery. Cost containment measures and continued investments in critical refinery infrastructure also contributed significantly. Despite these strides, SIGA cautioned that significant challenges persist.

The authority pointed to liquidity constraints, accumulated deficits, and the need for continued balance-sheet restructuring. These areas require sustained attention from TOR's leadership. SIGA urged the Board and Management to build on the current momentum. They emphasized deepening operational efficiencies and strengthening corporate governance standards. Accelerating efforts towards long-term profitability, competitiveness, and national energy security is also vital.

These positive developments occur amid increased volatility in global oil markets. Supply disruptions affecting crude trade routes have pushed international oil prices higher. Elevated refining margins have also become a feature of these markets. A consistently operating TOR could help reduce Ghana’s exposure to imported fuel price volatility. The refinery previously met between 45 percent and 60 percent of national fuel demand. A fully operational TOR could save the country hundreds of millions of dollars monthly. It would also strengthen domestic energy security by reducing costs associated with refined product imports.