Tema Oil Refinery records GH‵1.24bn profit after decade of losses

The Tema Oil Refinery (TOR) has achieved its first period of profitability in a decade, recording a profit before tax of GH₵1.24 billion for the 2025 financial year. Managing Director Edmond Kombat announced the financial turnaround during a press conference, attributing the success to the "Project Restore TOR" initiative. This revival marks a significant shift for the state-owned refinery, which had been struggling with operational shutdowns, negative equity, and mounting debt for several years. The refinery also reported revenue growth of over 36% in 2025 compared to the previous year.

A key milestone in the refinery's recovery was the resumption of crude processing in December 2025 following the successful turnaround maintenance of the Crude Distillation Unit (CDU). Notably, Mr. Kombat revealed that the CDU repairs, which had been non-operational since April 2021, were financed entirely through TOR’s internally generated funds without government assistance. The unit is currently operating at a throughput of 28,000 barrels per day, with engineers working to increase capacity to the facility’s design potential of 45,000 to 55,000 barrels per stream day.

This performance follows a period of extreme financial distress. When the current management took office in early 2025 under the administration of President John Mahama, TOR faced GH₵10 billion in accumulated losses and debt nearing $570 million. Through a restructuring program supported by the Energy Sector Levies Act (ESLA) and enhanced cash controls, the refinery has successfully slashed its total debt from $650 million to approximately $300 million. Additionally, the Ministry of Finance is reportedly considering a write-off of $120 million in legacy debt owed to the government to further bolster the refinery's balance sheet.

Beyond financial metrics, the operational restart has had a positive social impact, with management resolving over 300 staff-related issues and facilitating job creation within the Tema community. The refinery has also completed several crude cargo transactions, including the processing of Jubilee Medium Sweet crude. Moving forward, TOR aims to secure long-term sustainability through continued infrastructure investment, including improvements to its offshore mooring facility, to ensure it remains a viable cornerstone of Ghana's energy sector.