The Managing Director of the Tema Oil Refinery (TOR), Edmond Kombat, has announced a major financial turnaround for the state-owned refinery, with the company recording its first profit in a decade, at its 18th Annual General Meeting (AGM) held in Accra.
Mr. Kombat said TOR posted a profit before tax of GHS1.415 billion for the financial year ended December 31, 2025, after nine consecutive years of losses between 2016 and 2024. The development, he said, marked a significant turning point in the refinery’s recovery journey.
According to him, the company’s cumulative losses over the previous nine years amounted to GHS6.08 billion, but the 2025 performance represented a decisive step towards rebuilding the financial position of the refinery.
CDU Operations Drive Revenue Recovery
The TOR Managing Director attributed the improved performance partly to the successful completion of the Turnaround Maintenance (TAM) programme on the Crude Distillation Unit (CDU) in 2025.
He said the CDU returned to sustained operations after the maintenance exercise, enabling the refinery to process crude oil and supply petroleum products to the domestic market.
“Post-TAM, TOR refined approximately 600,000 barrels of crude oil, which is tangible evidence that the asset is operational and capable of generating value when properly maintained and supplied,” Mr. Kombat said.
He stressed that the performance of the CDU demonstrated that the investment in the turnaround programme was justified, rejecting previous calls for the asset to be scrapped.
Revenue from operations increased by 18.2 per cent in 2025 to GHS285.9 million, compared with GHS241.8 million in 2024. The growth, he explained, was driven by increased crude processing volumes and improved product realisation, making it the strongest revenue performance recorded by TOR within the 10-year period from 2016 to 2025.
Mr. Kombat added that management’s attention remains focused on the Residue Fluid Catalytic Cracking (RFCC) unit, whose turnaround maintenance is currently ongoing and expected to be completed by July 2026. He noted that the exercise is also being undertaken by TOR’s own technical staff.
Improved Financial Position
Mr. Kombat explained that the refinery’s return to active operations resulted in increased cost of sales, which rose from GHS21 million in 2024 to GHS66.6 million in 2025 due to increased crude processing activities.
TOR recorded a gross profit of GHS219.2 million, representing a gross margin of 76.8 per cent.
He said the major contributor to the 2025 profit was a foreign exchange gain of GHS1.38 billion, reversing a foreign exchange loss of GHS981.5 million recorded in 2024.
The Managing Director attributed the gain to improved currency movements and effective management of the company’s foreign currency exposure by the finance team.
Finance costs also declined by 26.8 per cent from GHS195.2 million in 2024 to GHS142.8 million in 2025, following debt restructuring and a reduction in long-term borrowings from GHS957.2 million to GHS695.5 million.
After a tax charge of GHS322 million, TOR recorded a profit after tax of GHS1.093 billion, marking the first positive transfer to the company’s income surplus account in 10 years.
The retained deficit was reduced from GHS8.962 billion at the beginning of the year to GHS7.869 billion by the end of 2025.
Debt Reduction and Balance Sheet Recovery
The refinery’s total debt declined by 13 per cent from GHS2.616 billion in 2024 to GHS2.327 billion in 2025.
Trade and other payables also reduced significantly from GHS7.122 billion to GHS5.517 billion, representing a reduction of GHS1.605 billion or 22.5 per cent.
Mr. Kombat said the reduction reflected improved management of supplier obligations and growing confidence among trade creditors in TOR’s recovery prospects.
Receivable days also improved from 1,099 days in 2024 to 652 days in 2025, a reduction of 447 days, although he acknowledged that further improvement was needed.
Despite the progress, TOR’s negative equity position remains a major challenge, with total equity standing at negative GHS4.533 billion as of December 31, 2025.
Mr. Kombat said sustained profitability, asset revaluation and continued financial discipline would be required to restore the company’s equity position.
No Dividend Declaration
The TOR Board of Directors announced that it would not declare dividends for the 2025 financial year despite the historic profit.
Mr. Kombat explained that accumulated deficits and balance sheet obligations did not allow for distribution of earnings at this stage.
He, however, assured shareholders that the situation would be reviewed as the company continues its financial recovery.
Safety and Industrial Relations
The Managing Director reported that TOR maintained strong safety standards throughout 2025, with no major incidents recorded during the CDU turnaround maintenance programme.
He said management continued to invest in training, equipment maintenance and environmental monitoring to ensure compliance with regulatory requirements.
On industrial relations, Mr. Kombat commended TOR workers for their commitment during years of uncertainty and difficult operating conditions.
He praised staff involved in clearing the company’s audit backlog and the local technical team that executed the CDU turnaround maintenance successfully.
Future Outlook
Mr. Kombat said although TOR continues to face significant financial challenges, the company now has a stronger foundation, having cleared six years of audit arrears, returned to profitability and reduced its debt burden.
He identified the accumulated deficit, negative equity position and outstanding financial obligations as key challenges requiring sustained profitability, debt restructuring and support from government.
He said discussions were ongoing with the Ministry of Finance regarding possible support, including the release of TOR’s share of the ESLA receivable estimated at a minimum of GHS1.6 billion.
Going forward, TOR plans to increase crude processing capacity, improve product yields, reduce operational costs and expand its crude supply options.
Mr. Kombat said management was also developing a three-year cost reduction programme focused on process efficiency, procurement optimisation and organisational restructuring.
He added that the refinery was exploring opportunities to process medium and heavy crude grades to improve feedstock flexibility.
TOR Recovery Path
Mr. Kombat described 2025 as a “turning point” in the history of Tema Oil Refinery.
He said the company had demonstrated that with proper maintenance, sound management and stakeholder support, TOR could return to being a commercially viable refinery.
“We have consolidated. We have shown what is possible. Now we build,” he said.
He thanked the Board of Directors, government agencies, customers, creditors, partners and staff for their support in rebuilding the refinery.
