GOIL Overcomes Revenue Decline to Post 45% Surge in Q1 Profit
- Fueling Profits, Not Just Sales: GOIL’s Winning Q1 Playbook
GOIL PLC has defied a downturn in gross revenues to post a significant jump in profitability during the first quarter of 2025, demonstrating strategic resilience in the face of a tightening market. The Ghanaian energy retailer and distributor reported a 45.2% year-on-year increase in net profit after tax to GH¢24.7 million, despite gross revenues slipping by 5.6% to GH¢11.6 billion.
The strong bottom-line performance was underpinned by aggressive cost management and operational efficiencies that more than offset subdued sales volumes. While the cost of sales declined by 6%, outpacing the revenue decline, GOIL’s gross profit climbed 7.8% to GH¢592.3 million. This margin expansion highlights a concerted effort by management to protect earnings quality even as top-line pressures persist.
Notably, operating profit before financing costs rose by 20.5% to GH¢135.0 million, driven by a 20.4% surge in supplementary income, signalling that ancillary services and non-fuel revenue streams are becoming increasingly material to the business. However, depot and station expenses rose sharply by 17%, reflecting inflationary pressures and infrastructure maintenance costs.
Finance costs continued to weigh heavily, climbing 16% year-on-year to GH¢96.2 million as elevated interest rates and debt servicing costs persist. Nonetheless, GOIL’s overall strategic discipline in managing overheads and enhancing productivity enabled profit before tax to grow by a robust 33.4% to GH¢38.7 million.
Earnings per share (EPS) rose from GH¢0.043 in Q1 2024 to GH¢0.063 in Q1 2025, a 46.5% increase, underlining enhanced shareholder value delivery. The company maintained its dividend per share at GH¢0.056, reflecting a cautious yet rewarding payout approach amid broader market uncertainties.
GOIL’s strong start to 2025 positions it favourably ahead of Ghana’s mid-year economic reforecast. With the overall petroleum industry struggling due to changing oil prices and new regulations, the company’s better profits indicate that its strategy of keeping costs low and exploring new ways to make money is starting to pay off.
The market will now be watching closely how GOIL manages its working capital challenges, particularly with cash and cash equivalents remaining negative at GH¢284.6 million at the company level. Analysts suggest that sustaining the momentum will require a careful balancing act between investment in growth and maintaining fiscal discipline.
Still, after a year of strategic recalibration, GOIL’s Q1 2025 results send a clear signal: earnings quality, not just revenue growth, will define success in the current operating environment.
Financial Highlights – Q1 2025 (vs. Q1 2024)
| Metric | Q1 2025 (GH¢’000) | Q1 2024 (GH¢’000) | % Change YoY |
| Gross Revenue | 11,599,794 | 12,286,993 | -5.6% |
| Net Revenue | 10,583,300 | 11,173,373 | -5.3% |
| Cost of Sales | (9,990,987) | (10,623,900) | -6.0% |
| Gross Profit | 592,313 | 549,473 | +7.8% |
| Sundry Income | 61,258 | 50,876 | +20.4% |
| Depot and Station Expenses | (152,570) | (130,388) | +17.0% |
| Staff, Selling & Administrative Exp. | (366,025) | (357,957) | +2.2% |
| Operating Profit Before Financing Cost | 134,976 | 112,004 | +20.5% |
| Net Finance Expenses | (96,245) | (82,967) | +16.0% |
| Profit Before Tax | 38,731 | 29,037 | +33.4% |
| Growth & Sustainability Levy | (1,937) | (1,452) | +33.5% |
| Income Tax Expense | (12,114) | (10,585) | +14.5% |
| Net Profit After Tax | 24,681 | 17,000 | +45.2% |
| Other Comprehensive Income | 4,287 | 5,203 | -17.6% |
| Total Comprehensive Income | 28,968 | 22,203 | +30.5% |
| Earnings Per Share (EPS) (GH¢) | 0.063 | 0.043 | +46.5% |
| Dividend Per Share (DPS) (GH¢) | 0.056 | 0.056 | 0% |
