Total asset increased from GHC1.345 billion to approximately GHC1.716 billion- GOIL Board Chair

Kwamena Bartels, the Board Chairman of GOIL Company has disclosed that the company has recorded its highest growth in 3 years.

Contrary to the significant drop in share prices of 45 percent in 2019, he revealed that the performance should improve demand for its shares which will boost its share valuation on the Ghana Stock Exchange.

The Board Chairman in his address at the company’s Annual General Meeting (AGM) iterated that despite the sterling performance of the company, it has retained some of its share earnings to finance some projects.

“Earnings per share moved from GHS0.209 to GHS0.269. Total asset increased from 1.345 billion cedis to approximately 1.716 billion cedis. The Company has embarked on projects that have the potential to yield higher gains in the future. For this reason, the board has decided to retain a considerable amount of the earnings per share to help finance the projects”.

That notwithstanding, a profit after tax of over GHS105 million, up by 29% when compared to the over GHS81million reported in 2018. The net profit after tax is the second-highest in 4 years falling behind the 35.6 percent growth reported in 2016.

With the staggering implications of the pandemic, and like most businesses, the company has experienced some demand challenges as a result of the impact of COVID-19.

Following the implementation of COVID restrictions in Ghana, that amount dropped to 22 million litres of petrol in April.

Commenting on the success of the company also was the Group CEO and MD Kwame Osei-Prempeh, who noted that, “2020 has been very challenging because of the COVID-19 outbreak and the lockdown. But GOIL being what it is we are catching up. The figures after the lockdown are very impressive and we expect them to improve. We are confident that by the next AGM in 2021, our key projects like the Bitumen project which is ongoing and would be operational during the year 2021, as well the construction of cylinder refilling plant would all boost the confidence in our company.”

The company’s share valuation on the Ghana Stock Exchange from January to August 19, dropped by 11.8 percent.

The Chief Operating Officer of GOIL, Mr. Alex Adzew, noted that the challenges inherent within the market space are as a of result impediments faced by people in securing their monies from the market.

“The capital market is skewed towards long-term investment, whiles the money market is for short-term. Anytime people have challenges in the money market they turn their attention to the capital market by selling off their stocks, and that is what we are seeing. People are having challenges securing their monies from the money market. So we can see people supplying or dumping more stocks than the market wants leading to the drop in our share valuation.”