GOIL builds aviation fuel facility in Takoradi

Accra, July 16, GNA - Mr Freddie Blay, out-going Board Chairman of GOIL on Thursday announced that the company has commenced construction of facilities in Takoradi in the Western Region to store and supply aviation fuel.

This development, he said, would enhance the business of GOIL and enable it to become a player in aviation fuel supply, for the first time in the history of the company.

Mr Blay, who made the announcement at the GOIL's 40th annual general meeting in Accra, said the company like other corporate bodies in the oil industry was adversely affected by the country's economic indicators.

He said inflation rose to 18.1 per cent by the end of last year and the cedi depreciated by 20.1 per cent against the dollar and 16.3 per cent against the Euro.

The outgoing Chairman said despite these economic challenges the company was resilient during the year under review and made a profit after tax of GH¢4.257 in 2008 as against GH¢4.021 in 2007, resulting in earning per share of GH¢0.020 up from GH¢0.19 in 2007. The company paid customs duties and other levies to the tune of GH¢65.66 million to the government as against GH¢66.8 million in 2007 and paid a corporate tax of GH¢1.12 million. The total contribution to Value Added Tax and the National Health Insurance was GH¢0.339 million.

Mr Blay said GOIL marked its first full year of operation last year and notwithstanding a general slowdown on the stock market, the company's share price stabilized at 30 GHp for most part of the year. He said in 2007 a share of GH¢0.007 was approved and paid. The total amount involved was GH¢1.471 million whilst last year GH¢0.0085 per share was proposed amounting to GH¢1.786 million, representing an increase of 21 per cent over 2007. Mr Blay on behalf of the board of directors, management and staff of the company expressed appreciation to the shareholders and other stakeholders of GOIL for supporting the company over the years. He asked the shareholders to extend the same co-operation to the incoming members of the board to enable them to take the company to greater heights. Mr Yaw Agyemang-Duah, Managing Director of GOIL said in his report that there was a perception that Oil Marketing Companies (OMCs) were reaping windfall from the ex-pump price increases, saying: "The opposite was the reality as more working capital had to be sourced at higher borrowing costs to meet the rising cost of doing business." He said since OMCs margins were fixed in Ghana pesewas per litre, upward increases in ex-pump prices were not favourable. The Managing Director said during the year, the company marketed about 346,000 metric tons of products as against 317,000 metric tons in 2007, adding that the sales turnover was GH¢438.86 million as against GH¢306.49 million, representing an increase of 43.19 per cent, attributing it to the higher ex-pump prices for the products. He said for the continuous enhancement of customer loyalty, the company had introduced the GOIL Advantage Card (a debit electronic card) for customers to use to buy products in all their stations in the 10 regions.

Mr Agyeman-Duah said the competition being offered by other oil marketing companies had rejuvenated and placed GOIL in a pole position, attracting international recognition due to its activities upstream. He stressed that the company's participation in the aviation fuel business was likely to materialize in 2009 and coupled with increased bunkering and related exploration activities being undertaken by the upstream companies would provide improvement in its business and offer a brighter future.