GOIL spends GHS 21m on CSR, increases auditor fees to GHS 726,000 as net profit dip by GHS 64m YoY

At the close of the 2023 fiscal year, net profit posted by GOIL and attributable to shareholders stood at GHS 17m, a significant decline from the GHS 40m recorded at the end of the second quarter of 2023.

On a year-on-year basis, GOIL recorded a GHS 64m decline in net profit when compared to the GHS 81m net profit posted at end-2022.

The slide in net profit earnings was despite an uptick in gross profit from GHS 517 million in 2022 to GHS 549 million in 2023.

The increase in gross profit was despite a marginal dip in gross revenue of the OMC from GHS 12.44bn in 2022 to GHS 12.28bn in 2023.

Cost of sales, administrative expenses, and staff rose to GHS 357m from GHS 303m within the review period.

The net profit earnings contraction as noted in the company’s financial report, impacted the company’s earnings per share (EPS) metric, which retreated from GHS 0.207 in the preceding year (2022) to GHS 0.043 in 2023.

Despite the decline in the company’s earnings per share, GOIL has proposed a final dividend of GHS 0.056 per share amounting to GHS 21.9m for shareholders for the year ended December 31, 2023.

The proposed final dividend for 2023 is the same as that of last year – 2022.

Within the review period, GOIL’s assets value declined. The aggregate assets value reached GHS 3.2 billion at the close of 2023, down from the previous year’s figure of GHS 3.6 billion.

Liabilities of the Oil Marketing Company (OMC) also dipped, falling to GHS 2.7 billion in 2023 from GHS 3.05 billion in 2022, driven largely by reductions in the company’s non-current and current liabilities.

According to the OMCs financial report for 2023, the company’s auditor’s remuneration for the year which excludes taxes and levies amounted to GH¢726,000, an 83% hike from the 2022 remuneration of GH¢395,000.

GOIL notes that a resolution proposing the re-appointment of the Company’s auditor’s, PKF, will be put before the Annual General Meeting in accordance with Section 139(5) of the Companies Act, 2019 (Act 992).

Furthermore, a total of GH¢21,090,000 was spent by the Company under social responsibility programmes with a key focus on education, health, and financial inclusion.

This is a 54.9% hike from the GH¢13,608,000 spent by the Company under social responsibility programmes in 2022.

Per the report, the Board of Directors has made an assessment of the Company’s ability to continue as a going concern and is satisfied that it has the resources to continue in business for the foreseeable future.

The report further states that the Directors are not aware of any material uncertainties that may cast significant doubt upon the Company’s ability to continue as a going concern. Therefore, the financial statements continue to be prepared on a going-concern basis.

GOIL was listed on the Ghana Stock Exchange in the year 2007. The Government of Ghana owns 34.23% of the shares while the other 65.77% are owned by individuals and other corporate bodies.

Source: Norvanreports