GOIL remains on dividend after profit decline of 44%

June 7, 2024
GOIL remains on dividend after profit decline of 44%

PLC, one of the largest indigenous (OMC) in Ghana has decided to maintain a dividend payment of GH¢0.056 per share to its shareholders for the year 2023.

This decision comes at a time when the Company recorded a profit decline of 44 per cent amid a significant rise in finance costs and operational costs.

For the year under review, profit declined from 123.9 million in 2022 to 54.7 million in 2023 while finance costs increased by 54.7 million representing a 196 per cent increase with operational costs rising by 25 per cent.

Mr Reginald Daniel Laryea, the Board Chairman of GOIL PLC, announced the decision at the 55th Annual General Meeting of the Company on Thursday.

He attributed the situation of lower profits and higher costs to elevated inflationary pressures caused by foreign exchange challenges, supply chain bottlenecks, higher utilitty costs and industry-wide product quality challenges.

On behalf of the Company, he apologised to customers affected by the product quality challenges.

“The past year was a particularly challenging one for our Company, fuel-quality wise. This peaked in the last quarter of the year when the perception that all the OMC super fuel was contaminated was rife.

“The actual cause was unfortunately not detectable by test facilities in-country. Thankfully the situation was brought under control before the year ended,” he said.

Going forward, he said the Company was keen on among other things, commissioning its bitumen plant, starting cylinder recirculation pending approval from authorities and exploring avenues to benefit from the electric car industry due to its disruptive nature to the oil sector.

Following the exit of ExxonMobil from the Deepwater Cape Three Point block agreement, he said that the Company was canvassing through its subsidiary, GOIL Upstream Limited, to seek partners to develop the oil prospects.

Mr Laryea also said the Company had recorded a 40 per cent decrease in armed robbery cases at fuel stations due to investment in technology.

He, however, noted that while physical theft had reduced, there was a sturdy increase in the incidence of cyber/electronic payment system fraud, which the Company was working to mitigate.

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