- GOIL Profit Rises to GH¢90.81 million as Lower Finance Costs Offset Weaker Operating Performance
GOIL increased group profit after tax by 9.3 per cent in the nine months to September 2026, although lower finance costs, rather than stronger operations, drove improvement.
The unaudited results show group revenue rising to GH¢14.53 billion from GH¢13.24 billion in the corresponding period of 2025, representing growth of about 9.8 per cent. Cost of sales increased more slowly, lifting gross profit by 18.9 per cent to GH¢651.79 million.
That improved the group’s gross margin to approximately 4.49 per cent from 4.14 per cent. For a fuel-marketing business operating with narrow margins and considerable price and volume exposure, the expansion is meaningful, even though fewer than five pesewas of every cedi of revenue remained after direct costs.
The stronger gross outcome did not flow fully into operations. General, selling and administrative expenses rose by 10.1 per cent to GH¢428.21 million, while the group moved from sundry income of GH¢63.61 million to a negative GH¢29.11 million position.
Consequently, operating profit before finance charges declined by 12.8 per cent to GH¢194.47 million from GH¢222.96 million. The operating margin narrowed to about 1.34 per cent from 1.68 per cent, indicating that the group converted a smaller proportion of revenue into profit from its core activities.
The bottom line was rescued by a substantial reduction in financing costs. Financial charges declined by 34.4 per cent to GH¢68.44 million from GH¢104.26 million, allowing profit before tax to increase by 6.2 per cent to GH¢126.03 million.
After taxation of GH¢35.22 million, group profit attributable to shareholders reached GH¢90.81 million, compared with GH¢83.09 million a year earlier. The result demonstrates the importance of funding costs to GOIL’s profitability: operational earnings weakened, but the amount absorbed by finance charges fell even faster.
The standalone company delivered a more dramatic improvement. Revenue increased by 37.2 per cent to GH¢10.28 billion, gross profit rose 31.1 per cent to GH¢537.32 million and operating profit advanced 17.5 per cent to GH¢146.61 million.
With company finance charges falling 35.2 per cent, profit before tax almost tripled to GH¢84.54 million from GH¢28.94 million. Net profit after tax increased to GH¢61.29 million from GH¢20.25 million, representing growth of approximately 203 per cent.
The divergence between the company and consolidated group suggests that performance across GOIL’s wider operations was less uniformly strong. Investors will need greater segment information to determine which subsidiaries diluted operating momentum and whether those pressures are temporary or structural.
GOIL reported group earnings per share of GH¢0.212 for both 2026 and 2025, despite the increase in attributable profit and a stated 391.86 million shares in issue. That apparent lack of movement deserves clarification because the disclosed profit growth would ordinarily be expected to affect per-share earnings unless another adjustment applies.
The balance sheet expanded considerably. Group assets rose by 21.4 per cent to GH¢6.37 billion, supported by growth in property, plant and equipment, inventories, receivables and cash.
The more demanding story lies within working capital. Group inventories surged by 77.8 per cent to GH¢774.98 million, while accounts receivable rose 15.1 per cent to GH¢2.94 billion. Together, stocks and receivables accounted for most current assets and tied up substantial cash in products and customer balances.
Receivables require similar attention. Growing sales often produce larger customer balances, but delayed collection can make reported revenue stronger than realised cash. GOIL must ensure that credit expansion does not weaken liquidity or increase exposure to customers whose ability to pay may deteriorate.
Accounts payable rose even faster, climbing 40.1 per cent to GH¢4.68 billion. This suggests that supplier credit is carrying a significant portion of the group’s expanded working-capital requirement. Payables alone represented about 73.5 per cent of total assets and more than four times shareholders’ equity.
Current liabilities reached GH¢4.97 billion against current assets of GH¢4.32 billion, leaving negative working capital of approximately GH¢642.44 million. The current ratio improved slightly to about 0.87 from 0.84, but remained below one, meaning short-term obligations continued to exceed short-term assets.
The liquidity picture nevertheless improved in cash terms. Cash and bank balances increased by 61 per cent to GH¢561.99 million, while bank overdrafts declined sharply to GH¢103.91 million from GH¢533.01 million.
Cash and cash equivalents ended the period at a positive GH¢471.52 million, reversing the negative GH¢170.47 million recorded in September 2025. At company level, the position improved to positive GH¢275.83 million from negative GH¢392.55 million.
This turnaround followed GH¢585.13 million in net operating cash inflows and GH¢134.23 million in net financing inflows. However, group operating cash flow declined by 16 per cent from GH¢696.25 million, even as reported profit increased.
GOIL also raised GH¢453.71 million through a medium-term loan and repaid GH¢296.26 million of term debt. Non-current and current term-loan balances increased overall, indicating that the reduction in overdraft dependence was partly accompanied by a shift towards longer-dated borrowing.
Capital expenditure remained substantial, with GH¢176.19 million spent acquiring fixed assets. GOIL also disclosed a GH¢264.30 million investment in African Bitumen Terminal Limited, a joint venture in which it holds 60 per cent but accounts for the interest using the equity method.
The bitumen venture represents an attempt to diversify beyond conventional fuel marketing into production, sales and related services. That expansion could create new revenue streams, but investors will expect evidence on commissioning, utilisation, profitability and the time required to recover the capital committed.
Shareholders’ equity increased by 10.8 per cent to GH¢1.08 billion, while the company paid GH¢23.22 million in dividends. Yet total liabilities grew faster than equity, keeping the group highly dependent on suppliers and lenders.
GOIL’s nine-month performance is therefore encouraging but not uncomplicated. Revenue, gross profit, cash balances and net earnings improved, and reduced finance charges provided meaningful relief. Against those gains stand weaker group operating profit, lower operating cash generation and rapidly expanding working-capital balances.
The next phase must show that GOIL can convert revenue growth into stronger operating margins and cash without relying excessively on payables or new debt. If management can collect receivables, manage inventory and extract returns from new investments, the improved bottom line may become durable rather than financing-driven.
