The Tema Oil Refinery (TOR) had accumulated losses of approximately GH¢10 billion and debt of about US$517 million when the current management assumed office in May 2025, Managing Director Edmond Kombat has disclosed.
The refinery's financial position had deteriorated significantly over the years, alongside prolonged operational shutdowns, outstanding statutory obligations and growing liabilities to creditors. The company's negative equity stood at GH¢7.6 billion by the end of 2024.
TOR owed approximately GH¢200 million to the Ghana Revenue Authority and GH¢20 million to SSNIT, alongside outstanding amounts due to the Electricity Company of Ghana, Ghana Water Company and other creditors. The company also had about GH¢190 million in outstanding obligations to its staff provident fund, retirees and former employees.
Management has responded by introducing a financial restructuring programme, commissioning an independent assessment of liabilities and engaging creditors on sustainable repayment arrangements.
The refinery has since completed the outstanding audited accounts for 2019 to 2024 and the 2025 accounts, while recording a profit before tax of GH¢1.24 billion in 2025, according to SIGA. The company's trade and other payables had fallen from GH¢7.1 billion to GH¢5 billion within a year.
The Ministry of Finance is working with TOR to consider writing off US$120 million in legacy debt owed to the government or converting it into equity.
Edmond Kombat said the refinery still has significant obligations to address but remains committed to improving its financial position and restoring its commercial viability. The current management took over in May 2025, and since then, the company has made significant progress in addressing its financial challenges.
The refinery's revival has also created jobs, with 1,657 permanent and temporary jobs created, and 6,500 indirect jobs.
The refinery's financial position is a significant concern for Ghana's economy, as it is a major player in the country's energy sector. The company's ability to refine crude oil and supply fuel to the market is critical to the country's energy security.
The Ministry of Finance's consideration of writing off US$120 million in legacy debt owed to the government or converting it into equity is a significant development that could help the refinery restore its commercial viability.