The Tema Oil Refinery has said that the GHS186 million it incurred as a
loss in the first four months of the year was not due to trading or
transactional activities.
Reacting to media reports about the loss, a statement from TOR said the
amount was as a result of financial interest charges and exchange rates
differences on TOR’s outstanding legacy debts yet to be paid from the
Energy Sector Levies Act (ESLA) proceeds.
That aside, the statement said TOR made a gross profit in the first
quarter of this year, “indicating that TOR is a potentially profitable
company.”
Nevertheless, the statement by TOR added the company has been facing
liquidity challenges culminating in the company’s inability to implement
its annual budgets.
“TOR’s revenue targets are not being achieved due to lack of working
capital to procure crude oil for processing on a continuous basis.
However, fixed costs continue to be incurred,” the statement added.
