TOR records GH¢1.24bn profit before tax in 2025 — MD

The Tema Oil Refinery (TOR) recorded a profit before tax of GH¢1.24 billion in 2025, marking the state-owned refinery’s first return to profitability in a decade.

Managing Director of TOR, Edmond Kombat, said the financial performance was among the key indicators of the refinery’s recovery from years of accumulated losses, mounting liabilities and gaps in financial reporting.

Mr Kombat said the current management inherited a difficult financial position when it assumed office in May 2025.

According to him, TOR’s debt had risen from about US$300 million in 2016 to approximately US$517 million by the time the previous administration left office, while accumulated losses had reached about GH¢10 billion.

The refinery’s financial position was further reflected in its negative equity of GH¢7.6 billion at the end of 2024.

Mr Kombat also disclosed that TOR had not filed audited financial statements for six consecutive years, covering the period from 2019 to 2024.

He said management had since cleared the backlog, completing the 2019 to 2024 financial statements by April 30, 2026, followed by the 2025 accounts on May 30, 2026.

The seven audited financial reports were subsequently submitted to the State Interests and Governance Authority (SIGA) and presented at TOR’s 18th Annual General Meeting on June 30, 2026.

Mr Kombat said SIGA commended the refinery for bringing its financial reporting up to date for the first time since the 2018 accounts were filed.

He said management had also succeeded in reducing TOR’s trade and other payables from GH¢7.1 billion to GH¢5 billion within a year.

At the same time, the refinery’s receivable days, which indicate the average period taken to recover money owed to the company, declined from 1,099 days to 652 days.

“What matters more is that trade and other payables fell from GH¢7.1 billion to GH¢5 billion in a single year, and receivable days fell from 1,099 to 652,” he said.

Mr Kombat attributed the improvement to macroeconomic stability and prudent management, but acknowledged that the next major test would be for TOR to generate operating profit from its refining activities in 2026.

“We intend to meet it,” he said.
TOR restructures legacy debts
Management has also begun restructuring the refinery’s outstanding liabilities, including commissioning an independent assessment of its obligations and engaging creditors on sustainable repayment arrangements.

The creditors include the Ghana Revenue Authority (GRA), the Social Security and National Insurance Trust (SSNIT), commercial entities and other state-owned companies.

Mr Kombat said TOR owed the GRA GH¢200 million and SSNIT GH¢20 million when the current management assumed office.

The refinery also had outstanding obligations to the Electricity Company of Ghana, Ghana Water Company and its staff provident fund, retirees and former employees.

According to the briefing, the amount owed to the staff provident fund, retirees and resignees stood at GH¢190 million.

Management has also intensified efforts to recover outstanding receivables, reviewed unaudited accounts and strengthened financial controls as part of measures to improve accountability.

Mr Kombat further disclosed that TOR ranked second among public institutions in the inaugural Public Financial Management Compliance League Table.

Despite the return to profitability and the reduction in outstanding payables, TOR continues to face significant financial obligations accumulated over the years.

Management is therefore seeking to sustain the gains while improving the refinery’s financial position and expanding its refining operations.

Mr Kombat said the broader objective was to place TOR on a stronger commercial footing through improved financial reporting, tighter controls and more disciplined management.