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Goil pursues MMT, others over GH¢12m debt

Patrick Akorli - CEO/MD of GOIL
Patrick Akorli - CEO/MD of GOIL

Oil marketing company, Goil, is hopeful that it will be able to recover the estimated 12 million cedis owed it by state transport company, Metro Mass Transport (MMT), by the end of the year.

It follows what the company says is its plan to recover its debts and invest the proceeds into its business from this year [2018] onwards.

Goil says the reduction in margins on sale of fuel coupled with delayed payments of debts such as the 12 million cedis owed it by the Metro Mass Transport (MMT) Company; means there is the need to reduce the impact on the financial strength.

The Managing Director of Goil, Patrick Akorli maintains that all other recoveries should be completed by the end of the year.

Mr. Akorli’s comment was in response to a question on the impact of the prevailing market price increases and how it is affecting the profit margin of Goil, at the company’s Annual General Meeting on April 25, 2018.

“If the prices of fuel are to be going up, as shareholders of GOIL we will be happy of this situation and also because our margins are increasing, but that will affect the whole economy too. This will also affect us indirectly. We are hopeful that very soon things will change and our margins will grow.”

“It is not only Goil whose margins are not increasing it applies to all other OMCs. But the company is working to outdo others within the market,” he explained.

Citi Business News understands that the MMT’s indebtedness have largely been associated with the refueling of cars at bulk supply stations which the government and management of the transport company have failed to pay for.

The development has been the case for some time now and it is reported to have affected the bottom-line of the OMC.

Goil records 39 million cedis profits

The financial statement presented to shareholders at the AGM showed that in 2017, Goil as a company recorded a profit after tax of GH¢39,335,000; compared to the GH¢35,256,000 recorded in 2016.

But the Group, recorded a profit after tax of GH¢65,089,000 cedis in 2017 up from the GH¢53,648,000 it recorded in 2016.

By: Pius Amihere Eduku/citibusinessnews.com/Ghana

Citi Business News