COVID-19 plummets GOIL profits by 14%
GOIL suffered a significant loss of profit and investor earnings due to the COVID-19 pandemic.
The Group’s profit after tax slumped to GH¢ 92.5 million from GH¢ 106.9 million, representing a 13.57 % drop, as COVID-19 wreaked havoc across the globe.
The company had posted steady growth in the last five years but took a nosedive in the last year.
There was a revenue shortfall to GH¢4.8 billion in 2020, as compared to GH¢6.2 billion in 2019, a reduction of 22%.
Consequently, earnings per share (EPS) was cut to GH¢0.236 from the previous year’s GH¢0.273, according to the firm’s 2020 unaudited financial statement.
Higher expenses in 2020 of GH¢ 226million, compared to 2019’s GH¢ 248 million shaved off a chunk of the profits despite a reduction of taxes paid to the government in 2020.
The report indicated a decrease in the cost of sales to GH¢ 4.5billion from GH¢ 5.9 billion even though gross profit went up by 2%.
The Group’s shareholder funds rose to GH¢620million in 2020 compared to GH¢545,616 in 2019.
However, the firm has a current ratio of 0.79 at the end of December 2020, which reflects challenges in meeting short-term obligations using its resources.
The company’s share price presently trade at GH¢1.50 on the Ghana Stock Exchange.
The year was disrupted by the pandemic forcing government institutions, businesses, educational institutions and the entertainment industry, among others, switching to online platforms for operations.
This is likely to have impacted patronage because a lot of companies particularly state institutions that buy fuel from Goil had cut vehicular movements.
Lockdowns and restrictions affected patronage while disruption in global supplies of fuel significantly impacted prices.
GOIL has registered three subsidiaries; GOEnergy Company Limited, a Bulk Oil Distribution Company (BDC), which distributes petroleum products to Oil Marketing Companies (OMCs); GOIL Offshore Ghana Limited, an upstream subsidiary which has a partnership with Exxon Mobil Ghana Limited for exploration operations in Ghana’s Deep-water Cape Three Points Bloc, and GOIL Financial Services Limited, which provides an electronic payment system and aims to provide money transfer services.
The Shareholding structure is as follows:
GOVERNMENT OF GHANA 34.23%