Tema Oil Refinery ‘justifies’ GHS186 million loss

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 that 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.