TOR Turns First Profit in a Decade as Govt Audits Energy Debts

Ghana's energy sector is entering a new era of financial accountability and commercial viability. The Ministry of Energy and Green Transition is partnering with the Ministry of Finance to audit state energy agencies, aiming to strip government-related debts from their balance sheets and unlock commercial financing. The announcement comes as Tema Oil Refinery (TOR) celebrates its first profit in a decade, proving that determined leadership and transparent governance can revive even the most distressed state enterprises.

Why is the government auditing energy sector debts?

Minister of Energy and Green Transition John Abdulai Jinapor announced the comprehensive audit to identify and remove liabilities arising from the government's side. Impaired balance sheets have long constrained state energy entities, preventing them from accessing competitive market financing.

What we want to do is to look at the debts, particularly arising from the government side, so that we can reduce it, take them off your balance sheet.

Jinapor explained. A cleaner balance sheet will position agencies like TOR to raise capital independently, especially now that macroeconomic stability and disinflation have significantly reduced borrowing costs.

How TOR cleared its US$517m legacy debt hurdle

TOR Board Chairman Nayon Bilijo revealed the company inherited a legacy debt portfolio of approximately US$517million when the current Board was inaugurated in July 2025. The exposure includes US$97million owed to government, US$58million to Ghana National Petroleum Commission (GNPC), US$78.9million to Volta River Authority (VRA), US$128million to Sahara Oil, and US$41million to BP.

Through the Energy Sector Levy Act (ESLA), approximately GH¢3.4billion has been collected on TOR's behalf, with GH¢1.47billion already applied against the company's debt. TOR is still owed a minimum of GH¢1.6billion in ESLA receivables from the finance ministry. Both Bilijo and Managing Director Edmond Kombat appealed to the government to restructure these debts by applying TOR's margin in the ESLA receivables to settle them.

TOR's financial turnaround by the numbers

TOR's financials tell a compelling story of recovery. Total debt fell 13 percent from GH¢2.62billion in 2024 to GH¢2.33billion in 2025. Long-term borrowings dropped 27 percent, from GH¢957.2million to GH¢695.5million. Trade and other payables decreased by GH¢1.61billion, a 22.5 percent reduction.

Revenue grew 18.2 percent to GH¢285.9million in 2025, the strongest performance in the ten-year period from 2016 to 2025. A foreign exchange gain of GH¢1.38billion, compared to a loss of GH¢981.5million in 2024, drove profit before tax to GH¢1.42billion. After a tax charge of GH¢322million, TOR posted a profit after tax of GH¢1.1billion, its first profit in a decade following nine consecutive years of losses totalling GH¢6.08billion.

What does clearing a six-year audit backlog mean for governance?

For years, TOR operated without published financials, a gap that eroded trust and investor confidence. The company presented audited financial statements covering 2017 through 2025 at the same meeting, closing a six-year audit backlog. Kombat described the backlog as not a single administrative failure but a systemic collapse in financial governance. All six backlog years were audited and finalized by April 30, 2026, with the 2025 accounts completed by May 30, 2026.

Minister Jinapor commended the turnaround, praising Kombat's tenure as one hundred over one hundred. He noted that the company's nine-year inability to publish financials had signaled it was actually dead, but current management proved that strong leadership can overcome seemingly insurmountable challenges.

TOR's capacity expansion and operational milestones

Operationally, TOR is accelerating. Turnaround maintenance on the Crude Distillation Unit (CDU) is complete, processing approximately 600,000 barrels of crude oil in December 2025 alone. The CDU currently processes 28,000 barrels per stream day (bpsd). A second furnace under construction by foreign engineers will raise capacity to approximately 45,000 bpsd, while completion of the Residue Fluid Catalytic Cracking (RFCC) unit, expected in July 2026, will push capacity to 65,000 bpsd.

TOR secured a crude supply agreement covering approximately one million barrels per month for the next two years. Management estimates every one million barrels processed generates between US$4million and US$6million in receivables. A fully operational refinery will reduce Ghana's foreign exchange expenditure on imported petroleum products, currently estimated at approximately US$400million monthly.

How is TOR rebuilding its workforce and infrastructure?

Rebuilding human capital has been central to TOR's revival. Staff numbers, which fell to 547 in 2024, have been rebuilt to 1,144. Receivable days improved from 1,099 in 2024 to 652 in 2025, an improvement of 447 days. General and administrative expenses rose 27.3 percent to GH¢346.5million, driven by staff recruitment and turnaround maintenance costs. Kombat noted that when he took over, a significant portion of the refinery's skilled labor was over 45, with many seeking better terms in the Middle East and at Dangote Refinery.

Infrastructure upgrades are also underway. TOR inherited 17 storage tanks out of service, currently undergoing repairs. The company's loading gantry is being automated to increase loading efficiency by 33 percent, reducing the time to load 8 million litres from 24 hours to just 8 hours.

Can TOR's turnaround attract diaspora investment?

TOR's transformation from a debt-laden, audit-deficient enterprise to a profitable, transparent operation sends a powerful signal to Ghana's diaspora and international investors. With cleaner balance sheets, clear governance, and expanding capacity, state energy agencies are finally positioning themselves as viable commercial partners. The government's commitment to isolating and restructuring legacy debts could be the catalyst that opens the door for diaspora capital and international financing to flow into Ghana's energy sector, driving the economic growth and transparency the country needs.