GOIL PLC recorded a 7.05 per cent increase in net profit in 2025 despite a substantial decline in revenue, according to the 2025 State Ownership Report.

The state-controlled oil marketing company’s net profit increased from GH¢84.70 million in 2024 to GH¢90.67 million in 2025.

The improvement came despite operating revenue falling by 8.91 per cent, from GH¢20.36 billion to GH¢18.55 billion during the period.

Total revenue similarly declined from GH¢20.43 billion in 2024 to GH¢18.59 billion in 2025, while profit before tax fell from GH¢353 million to GH¢336.67 million.

The report attributed the increase in net profit partly to a significant reduction in income tax expenses, which declined from GH¢46.37 million in 2024 to GH¢27.11 million in 2025.

GOIL’s net profit margin consequently improved from 0.41 per cent to 0.49 per cent, while its operating profit margin edged up from 1.20 per cent to 1.24 per cent.

Operating profit, however, declined from GH¢244.92 million in 2024 to GH¢230.02 million in 2025.

The company maintained full cost recovery, posting a cost recovery ratio of 101.04 per cent. The report said GOIL had consistently maintained a cost recovery rate slightly above 100 per cent over the past five years.

The performance came amid what the report described as a challenging operating environment marked by fuel price volatility and tightening margins in the downstream petroleum industry.

The report is released by the State Interests and Governance Authority (SIGA) on Monday, August 31.

Returns on assets and equity fall

Although GOIL’s net profit increased, returns on its expanding assets and shareholders’ funds declined moderately.

Return on assets fell from 2.85 per cent in 2024 to 2.53 per cent in 2025, while return on equity decreased from 9.47 per cent to 9.14 per cent.

The report explained that the company’s asset and equity growth outpaced the increase in profitability, resulting in lower returns.

GOIL’s total assets increased by 1.53 per cent, from GH¢4.81 billion in 2024 to GH¢4.88 billion in 2025.

Its non-current assets also expanded from GH¢1.66 billion to GH¢1.84 billion.

The company’s equity position strengthened by 10.90 per cent, rising from GH¢894.08 million in 2024 to GH¢991.54 million in 2025.

According to the report, the improvement was mainly supported by an increase in retained earnings from GH¢643.22 million to GH¢707.66 million.

Over the five-year period from 2021 to 2025, GOIL’s asset base expanded by 95.49 per cent, reinforcing its market presence and operational capacity.

Operating cash flow rebounds strongly

GOIL recorded a significant recovery in cash generated from its operations during the year.

Net cash flow from operating activities rebounded from a negative GH¢382.20 million in 2024 to a positive GH¢881.90 million in 2025, representing a 330.74 per cent improvement.

Its operating cash flow-to-revenue ratio consequently improved from negative 0.02 to 0.05.

The company’s short-term debt coverage ratio also recovered from negative 0.11 to 0.24, indicating improved working capital management and cash collection.

Net cash used in investing activities reduced from GH¢424.18 million to GH¢340.67 million. Meanwhile, net cash flow from financing activities moved from a positive GH¢790.52 million in 2024 to a negative GH¢410.72 million in 2025.

The report, however, showed that GOIL ended the year with negative cash and cash equivalents of GH¢11.73 million, an improvement from negative GH¢142.24 million in 2024.

Payables rise above GH¢3bn

Despite the strong rebound in operating cash flow, the report identified continuing pressure on GOIL’s short-term liquidity.

Its current ratio declined from 0.87 in 2024 to 0.84 in 2025, remaining below the benchmark of 1.0.

This means the company’s current assets were insufficient to cover its current liabilities fully.

The report, however, noted that a current ratio below 1.0 could suggest reliance on supplier financing, which is common in the fuel-marketing business.

GOIL’s trade and other payables increased by 17.46 per cent, from GH¢2.63 billion in 2024 to GH¢3.09 billion in 2025.

Its interest coverage ratio also declined from 2.27 times to 2.16 times, indicating a slight reduction in the earnings available to meet present and future interest obligations.

Debt falls as financial leverage improves

GOIL reduced its interest-bearing liabilities from GH¢1.24 billion in 2024 to GH¢771.85 million in 2025.

The company’s total debt and liabilities also declined slightly from GH¢3.91 billion to GH¢3.89 billion.

Its debt-to-assets ratio improved marginally from 0.81 to 0.80, although the report said the figure remained relatively high and exposed the company to financial risks.

GOIL’s equity multiplier declined from 5.38 to 4.92, indicating reduced financial leverage and a greater contribution of shareholders’ equity to the financing of its assets.

The Government of Ghana holds a 34.23 per cent stake in GOIL, which operates as an oil marketing company and supplies petroleum and other energy products.

The report said GOIL did not disclose any major events, quasi-fiscal activities or climate-smart investments undertaken in 2025.