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

Tema Oil Refinery (TOR) has reported a profit before tax of GH₵1.24 billion for the 2025 financial year, marking its first profitable period in a decade. Managing Director Edmond Kombat announced the results, noting that the refinery successfully transitioned from a period of severe financial distress that saw accumulated losses of GH₵10 billion and debts of approximately $517 million. This turnaround follows a strategic directive from President John Mahama to revive the national asset, which had previously been restricted to minimal operations and storage rentals. The operational revival was underpinned by "Project Restore TOR," which focused on restoring the refinery's core infrastructure. A significant milestone was the completion of turnaround maintenance on the Crude Distillation Unit (CDU), which had been idle since April 2021. This work was notably funded through internal resources and executed by TOR's own engineering team. Since resuming crude processing in December 2025, the refinery has handled significant shipments, including Jubilee Medium Sweet crude, and is currently operating at a capacity of 28,000 barrels per day with plans for future expansion. To stabilize its long-term financial health, the refinery has initiated a comprehensive restructuring program to address a negative equity of GH₵7.6 billion recorded at the end of 2024. Management is also working with the Ministry of Finance to potentially write off $120 million in legacy debt. Beyond the balance sheet, the restoration of operations has allowed TOR to resolve over 300 staff-related issues and resume its role as a major employer in the Tema region, signaling a shift away from years of industrial decline. The Institute for Energy Security (IES) has welcomed the refinery's return to profitability, highlighting its critical role in Ghana's energy landscape. IES Senior Analyst Xatse Derrick Emmanuel stated that local refining capacity will help stabilize domestic fuel prices by reducing the heavy reliance on imports and mitigating the impact of global market volatility. The IES emphasized that for this recovery to be sustainable, the government must ensure a consistent and reliable supply of crude oil to the facility to maintain optimal production levels and enhance national energy security.