The indigenous oil and gas group partnered a company from Cote d’Ivoire which has experience in the bitumen production to set up the plant, which is expected to drastically reduce the importation of the material in the country.

The Chairman of the company’s Board of Directors, Reginald Daniel Laryea, addressing the 54th annual general meeting (AGM) of the company in Accra last Wednesday, said the new subsidiary would produce the Polymer Modified Bitumen (PMB), which was considered the best in the bitumen range of products due to its superior properties compared to other types.

“The PMB possesses a resilient and long-lasting feature capable of sustaining and preserving roads for a longer period than the regular asphalted roads,” he said.

“It is our expectation that the terminal will produce the required quantities of PMB sufficient to serve the needs of the roads construction sector and to serve as an export product to other countries, particularly in the West African sub-region,” the chairman added at the hybrid AGM, which also had shareholders joining via electronic meeting platforms.

The meeting received and approved the company’s annual report for the year 2022, approved dividend of GH¢0.056 per share, re-elected directors and authorised the directors to fix the remuneration of the auditors and that of the directors. 

Local content

Mr Laryea appealed to the government to extend the local content and local participation requirements to the road construction sector to reduce the import of the bitumen.

GOIL PLC also believes when road construction picks up again shortly, sale of products from the plant, which started operations in September last year, would increase.

The bitumen plant is one of two big ticket projects GOIL PLC is undertaking to take advantage of opportunities in the downstream oil and gas sector.

The other is the construction of cylinder refilling plants under the Cylinder Recirculation Model (CRM) in Tema and Kumasi.

While the plant in Tema is complete, that of Kumasi is 95 per cent complete and both are expected to start operation by the close of the year.

Financials

In spite of the sales in the downstream oil industry slowing by 9.6 per cent in 2022, Mr Laryea said GOIL PLC group recorded 160 per cent growth in gross revenues and 135 per cent for the company.

The group posted 26 per cent growth in profit after tax to GH¢123.89 million for last year, as against the GH¢98.74 million it posted in 2021.

The chairman explained that new businesses and enhanced business operations enabled the company to keep its promise of continuously improving shareholder value.

The company’s earnings per share improved by 25 per cent from GH¢0.316 per share to GH¢0.252, allowing the listed company to declare dividend of GH¢0.056 per share, translating into a payout of GH¢21.94 million, up by 19 per cent compared to the previous year.

High contributors

GOIL’s performance was buoyed by increased visibility, the number of stations, which increased by four per cent in the period under review, enabling the company to extend its market share from 15.32 per cent in 2021 to 20.11 per cent.

“Consequently, our overall market share grew from 15.32 per cent in 2021 to 20.11 per cent in 2022,” Mr Laryea added.

The business of supplying fuel to ships, otherwise known as bunkering, is one of GOIL’s main stays, where the group extended its 60 per cent share of that market to 73 per cent within the period under review.

With significant investments in the supply of quality products and services, Mr Laryea said GOIL PLC expanded its fuel sales volume to the mines from 49.2 million litres in 2021 to 59.2 million litres last year.

The chairman said the company had also rejuvenated its non-fuel business which thrived on allowing other businesses to operate from its service stations such as GoCafes and Lubebays.

In the year under review, Mr Laryea reported that eight GoCafes were rebranded at different locations, while the company increased its partnership with banks and food chain operators over the last five years.