Tema Oil Refinery (TOR) has reported a remarkable financial turnaround, posting a profit before tax of GH¢1.24 billion in 2025 after a decade of losses, in what Managing Director Edmond Kombat describes as a major step towards restoring the fortunes of Ghana’s troubled state-owned refinery.
The development marks a significant shift for the refinery, which was grappling with accumulated losses of approximately GH¢10 billion and debts estimated at US$517 million when the current management took over in May 2025.
Speaking at the Government Accountability Series at Jubilee House on Monday, October 26, 2026, Mr Kombat outlined the financial and commercial measures being implemented to stabilise the company and rebuild confidence in its operations.
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At the heart of the recovery effort is a push to reduce outstanding liabilities, improve revenue generation and strengthen financial discipline.
Debt burden begins to ease
One of the clearest signs of progress is the reduction in TOR’s trade and other payables, which fell from GH¢7.1 billion to GH¢5 billion within a year.
The refinery has also reduced its receivables days from 1,099 to 652, indicating an improvement in the time taken to collect outstanding payments.
“What matters more is that trade and other payables fell from GH¢7.1 billion to GH¢5 billion in a single year, and receivable days fell from 1,099 to 652,” Mr Kombat said.
The reductions form part of broader efforts to improve cash flow, strengthen accountability and restore the refinery’s ability to meet its financial obligations.
For a company that has faced years of financial pressure, the figures provide an indication of the scale of the restructuring underway, although sustaining the gains will depend on continued operational and financial improvements.
Revenue gains signal commercial recovery
TOR’s commercial performance has also improved.
Mr Kombat disclosed that revenue from commercial operations grew by more than 36 per cent in 2025 compared with 2024. By September 2026, revenue had increased by almost 60 per cent, pointing to further growth in the refinery’s business activities.
Management has also stepped up efforts to recover outstanding receivables, tighten financial controls and improve operational efficiency.
The ongoing upgrade of the refinery’s Quality Control Laboratory is another component of the recovery programme, aimed at strengthening quality assurance and supporting more efficient operations.
The improvements come as management seeks to reposition TOR as a financially sustainable and commercially competitive player in Ghana’s petroleum industry.
Government considers relief on legacy debt
Despite the reported gains, the refinery continues to face substantial legacy liabilities that require a longer-term solution.
Mr Kombat said TOR was pursuing a debt restructuring programme involving independent assessments of its liabilities and engagements with major creditors, including the Ghana Revenue Authority (GRA) and the Social Security and National Insurance Trust (SSNIT).
The objective is to establish sustainable repayment arrangements that will ease pressure on the company’s finances while addressing its outstanding obligations.
The Ministry of Finance is also working with TOR to consider writing off US$120 million in legacy debt owed to the government or converting the amount into equity.
Either option could help reshape the refinery’s financial position, subject to the outcome of the government’s considerations.
Can TOR sustain the turnaround?
TOR’s return to profitability represents an important milestone after years of financial difficulties. However, the bigger test will be whether the refinery can maintain its improved performance, manage its outstanding debts and build a stable commercial foundation.
The reduction in payables, growth in revenue and reported profit offer grounds for cautious optimism. Yet, resolving legacy liabilities and sustaining efficient operations will remain central to the refinery’s long-term recovery.
For now, the 2025 results provide a significant indicator that efforts to revive the refinery are beginning to yield financial returns. Whether those gains translate into lasting operational stability will depend on the next phase of TOR’s recovery programme.
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Samuel Kwame Boadu is a Ghanaian entrepreneur, writer, and digital consultant passionate about creating impactful stories and business solutions. He is the Founder & CEO of SamBoad Business Group Ltd, a dynamic company with subsidiaries in digital marketing, logistics, publishing, and risk management.
