Goil Positions to Enter Aviation Fuel Supply Business

Daniel Nonor

Ghana Oil Company Limited (GOIL) says it has commenced construction of facilities in Takoradi in the Western Region to store and supply aviation fuel, a development which will enhance the business of the company, and enable it become a major player in the aviation fuel supply business, for the first time in the history of the company.

Mr. Freddie Blay, out-going Board Chairman of GOIL, made this known at the company’s 40th Annual General Meeting in Accra last Thursday.

The company made a profit and profit after tax of GH¢4.257 in 2008 as against GH¢4.021 in 2007, resulting in earnings per share of GH¢0.020, up from GH¢0.19 in 2007.

The company paid customs duties and other levies to the tune of GH¢65.66 million to the government, as against GH¢66.8 million in 2007, and paid a corporate tax of GH¢1.12 million. The total contribution to Value Added Tax and the National Health Insurance was GH¢0.339 million.

Mr. Blay noted that that the company made these remarkable strides at the backdrop of rising inflation, and a constant depreciation of the Cedi against major currencies such as the US Dollar and Euro.

Inflation rose to 18.1% by the end of the year, and the Cedi depreciated by 20.1% and 16.3% against the US dollar and the Euro respectively.

He added that last year marked the company’s first full year of operation as a listed company, but noted that despite a general slowdown on the stock market, the company’s share price stabilised at Gp30 for most part of the year.

He said in 2007 a share of GH¢0.007 was approved and paid. The total amount involved was GH¢1.471 million, whilst last year GH¢0.0085 per share was proposed, amounting to GH¢1.786 million, representing an increase of 21 per cent over 2007.

He however hinted that the developments in the upstream sectors of the industry brings on board opportunities, which the company would explore to better its fortunes.

Mr. Yaw Agyemang-Duah, Managing Director (MD) of GOIL, noted that during the year under review, the company marketed about 346,000 metric tonnes of products, as against 317,000 metric tonnes in 2007, adding that the sales turnover was GH¢438.86 million as against GH¢306.49 million, representing an increase of 43.19 per cent, attributing it to higher ex-pump prices for the products.

He said the company’s continued strides in the bunkering business was due to the implementation of a strategy to position GOIL in the international bunker business, and as a major player in that regard.

Adding that the as the activities of the upstream sector evolve, a number of other activities were being pursued with the view to continue to tap into the opportunities that the oil find is offering.