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

The Tema Oil Refinery (TOR) has recorded a profit before tax of GH₵1.24 billion for the year 2025, marking the state-owned company’s first return to profitability in ten years. Managing Director Edmond Kombat announced the results, attributing the turnaround to a series of strategic reforms aimed at improving commercial operations and tightening financial controls. The achievement follows a prolonged period of fiscal instability during which the refinery struggled with mounting debts and significant operational inefficiencies.

Key operational metrics indicate a significant improvement in the refinery's financial health over the past year. Management successfully reduced trade payables from GH₵7.1 billion to GH₵5 billion, while also bringing down the number of receivable days from 1,099 to 652. Furthermore, TOR saw its revenues grow by more than 36% compared to 2024. Kombat highlighted that the current administration also cleared a six-year backlog of financial audits, providing a clearer picture of the refinery’s true fiscal position for the first time in several years.

Despite this positive result, the refinery continues to navigate a challenging landscape characterized by historical liabilities. By May 2025, TOR’s accumulated losses had reached GH₵10 billion, with external debts estimated at approximately US$517 million. To address these legacy issues, management is currently engaged in a comprehensive restructuring exercise. This includes efforts to recover outstanding debts and ongoing negotiations with the Ministry of Finance, which is reportedly considering writing off US$120 million in legacy debt to help stabilize the institution's balance sheet.

The return to profitability is seen as a vital step toward restoring the refinery’s capacity to support the national economy under the administration of President John Mahama. Moving forward, TOR aims to leverage its improved financial standing to strengthen its core operations and ensure long-term sustainability. The refinery's leadership remains focused on maintaining disciplined financial management and pursuing further commercial enhancements to build on the gains achieved during the 2025 financial year.