GOIL GROUP - Annual Reports Ghana · 2019. 12. 25. · Aggressive communication programme Increased...

GOIL GROUPFacts Behind the Figures

Presentation to the Ghana Stock ExchangeMay 2019

This document is prepared by Ghana Oil Company Limited 2

Table of Content

Introduction

Background of GOIL

Corporate Performance

Strategic Direction

1

2

3

4

3

6

12

22


Introduction

GOIL has over the years made significant strides in transforming itself from a near-moribund

state enterprise to become the number one oil marketing giant in the country.

Prior to 2007, the downstream sector of the petroleum industry was regulated and dominated

by multinationals who controlled nearly 72% of the total market share.

GOIL was not in the position to compete with these multinationals who were heavily supported

by their parent companies abroad

This was GOIL in the Past


Introduction

To be able to catch up with the competition and outperform the multinationals, there was the need for the

company to embark on a new strategic direction, restructure its operations and rebrand to become a brand of

choice for Ghanaians.

From 2007, Management of GOIL embarked on a strategic road map to change the face of the company. The

following strategic and tactical initiatives were adopted:

Developed a 5 year strategic plan to guide the company in fulfilling its new objectives.

Changed the company’s Vision and Mission in line with its new objectives.

Listed the company on the Ghana Stock Market to raise capital for expansion

Rebranded the company with a new logo to be identified as a brand of choice for customers.

Value proposition that will identify the company as an indigenous OMC marketing quality petroleum

products competitively.

Changed service stations outlook

New corporate culture dubbed “ Good energy comes with a Smile”

Aggressive communication programme

Increased the number of service stations spread across the country.

Embarked on developing new infrastructure to support its operations to become a market leader

These initiatives significantly changed the face of GOIL.


Introduction

This is GOIL today:


Background of GOIL

• Ghana Oil Company Limited (GOIL) was initially incorporated on June 14, 1960 as AGIP

Ghana with AGIP SPA of Italy and SNAM SPA as shareholders. In December 1968,

Hydrocarbons International of Zurich, Switzerland bought into the company. In 1974, the

Government of Ghana acquired 100% shares and changed the name to Ghana Oil Company

Limited.

• It is registered with 1,000,000,000 shares of no par value out of which 391.86 million shares

have been issued.

• The Company has incorporated three subsidiaries currently being managed under the GOIL

Group.


Our mission is:

to market quality petroleum and other energy products and

services in all its branches in an ethical, healthy, safe,

environmentally friendly and socially responsible manner.

to produce and manufacture goods or provide services which

enhance or support the marketing, distribution and sale of the

company’s products and services

VISION &

MISSION

Our vision is to be a world-class provider of goods and services in

the petroleum and other areas of the energy industry.

Background of GOIL


Subsidiaries

GOENERGY Limited, a Bulk Oil Distribution

Company (BDC), whose operations are to distribute

petroleum products to Oil Marketing Companies

(OMC’s);

GOIL Offshore Limited, an offshore company to

provide offshore bunkering facilities to rigs, vessels and

oil tankers as well as engaging in upstream activities.

GO Financial Services Limited to provide electronic

payment system and money transfer services.

Shareholding Structure

Name of Shareholder Holdings

Government of Ghana 34.23%

Social Security and National Insurance Trust 25.00%

Bulk Oil Storage and Transport 20.03%

Others 20.74%

Total 100%

Background of GOIL


The company's main business is marketing and distribution of petroleum products in Ghana.

LPG Bunkering

Lubricants

Fuels Marketing

BitumenATK

Background of GOIL

GoCard


Depots

Takoradi

Kumasi

Buipe

Tamale

Tema

Accra

BACKROUND OF GOIL

Marketing Arms

Zonal Office North

Zonal Office Upper Middle

Belt

Zonal Office South East

Zonal Office South

Zonal Office Tema

Zonal Office West

Zonal Office Middle Belt


The company was incorporated

as a Private Limited Liability

Company on June 14, 1960 as

AGIP Ghana Company Limited.

The shareholders were AGIP

SPA of Italy and SNAM S.P.A

SNAM S.P.A.

transferred its shares

to Hydrocarbons

International Holdings

Government of

Ghana acquired

shares of AGIP SPA

and Hydrocarbons

International

Holdings

Special resolution is

passed and name of

Company changed

to Ghana Oil

Company Limited

Conversion from Private

Limited Liability Company

to a Public Company and

Listing on the Ghana

Stock Exchange

1960 200719741968 1976 2010 - 2012 2013- 2016

Rebranding started in

2010, implemented in

2011 and launched in

2012.

Incorporation of:

GOENERGY Limited

GOIL Offshore Limited

GO Financial Services

HISTORICAL TIMELINE

2018

Partnered with

ExxonMobil for

upstream oil

exploration

Background of GOIL


Product Market Share

2014 2015 2016 2017 2018

Gasoline 167,204 239,155 268,476 265,904 278,626

Diesel 192,678 266,516 285,913 264,581 261,988

ATK 16,117 15,881 12,212 14,607 15,477

MGO Bunkering 23,985 34,622 36,511 52,057 46,562

LPG 12,581 14,409 19,031 22,299 27,865

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Products Sales Volume (Metric Tonnes)

Petroleum Product 2014 2015 2016 2017 2018

Ranking

2018

GASOLINE 14.9% 20.3% 24.7% 24.6% 22.2% 1

GASOIL 13.4% 16.4% 19.7% 22.0% 18.3% 1

ATK 16.2% 14.2% 9.2% 8.8% 7.7% 4

MGO Bunkering 25.1% 25.8% 18.7% 26.5% 38.0% 1

LPG 5.2% 5.1% 6.8% 8.1% 9.7% 1


PRODUCT PERFORMANCE


13.4%16.4%

19.7%22.0% 22.2%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

2014 2015 2016 2017 2018

Gasoline Market Share 2014-2018

14.9%

20.3%

24.7% 24.6%

18.3%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

2014 2015 2016 2017 2018

Gasoil Market Share 2014-2018

14.04%

15.77%

18.20% 18.30%

16.68%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

20.00%

2014 2015 2016 2017 2018

GOIL Aggregate Market Share 2014-2018


Product Market Share

PRODUCT PERFORMANCE


1,547 1,955 2,028

2,468

3,081

-

1,000

2,000

3,000

4,000

2014 2015 2016 2017 2018

GH

¢ M

illio

ns

Sales Revenue 2014 - 2018

20,166 22,211

35,256 39,335

54,114

-

10,000

20,000

30,000

40,000

50,000

60,000

2014 2015 2016 2017 2018

GH

¢ ‘0

00

Net Profit 2014 - 2018

341 521

758 901

1,100

-

500

1,000

1,500

2014 2015 2016 2017 2018

GH

¢ M

illio

ns

Total Assets 2014 - 2018

Sales increased from GH¢1,547.03 million to GH¢3,080.51 million Profit after tax increased from GH¢20.17 million to GH¢54.11 million

Total assets increased from GH¢340.83 million to GH¢1,099.50 million.

99.12% Growth

222.59% Growth

168.34% Growth

Corporate PerformanceFINANCIAL PERFORMANCE 2014-2018


Income Statement Highlights

2018 2017 Growth 2018 2017 Growth

GH¢'000 GH¢'000 GH¢'000 GH¢'000

Net Revenue 5,091,624 4,078,563 24.84% 3,080,508 2,467,872 24.82%

Gross Profit 287,135 202,807 41.58% 229,532 155,907 47.22%

Operating Profit 120,507 80,088 50.47% 82,025 45,076 81.97%

Profit before Tax 114,138 84,523 35.04% 76,195 49,511 53.90%

Net Profit 81,947 65,089 25.90% 54,114 39,335 37.57%

CompanyGroup2,467.87

3,080.51

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2017 2018

GH

¢ M

illi

on

Net Revenue - GOIL

4,078.56

5,091.62

-500

500

1,500

2,500

3,500

4,500

5,500

2017 2018

GH

¢ M

illi

on

Net Revenue - GROUP

39.34

54.11

0

10

20

30

40

50

60

2017 2018

GH

¢ M

illi

on

Net Profit - GOIL

65.09

81.95

0

20

40

60

80

100

2017 2018

GH

¢ M

illi

on

Net Profit - GROUP


FINANCIAL PERFORMANCE 2017-2018

Revenue growth is driven by:

• strong performance in the Retail Sector and Bunkering

as well as aggressive marketing campaign resulting in

increase in sales volume

• Profit is driven by increase in margins and cost

management


Balance Sheet Highlights

2018 2017 Growth 2018 2017 Growth

GH¢'000 GH¢'000 GH¢'000 GH¢'000

Total Assets 1,345,513 1,036,510 29.81% 1,099,504 900,529 22.10%

Total Liabilities 906,864 669,444 35.47% 750,196 594,970 26.09%

Total Equity 438,649 367,067 19.50% 349,308 305,559 14.32%

Group Company

900.53

1,099.50

0

200

400

600

800

1,000

1,200

2017 2018

GH

¢ M

illi

on

Total Assets - GOIL

594.97

750.20

0

200

400

600

800

2017 2018

GH

¢ M

illi

on

Total Liabilities - GOIL

669.44

906.86

0

200

400

600

800

1,000

2017 2018

GH

¢ M

illi

on

Total Liabilities - GROUP

1,036.51

1,345.51

0

500

1,000

1,500

2017 2018

GH

¢ M

illi

on

Total Assets - GROUP


FINANCIAL POSITION 2017 - 2018

Asset growth driven by:

• Acquisitions and takeovers of distressed competitor

stations at strategic locations.

• Joint venture partnerships in station development.

• Investment in bunkering facilities at Sekondi Naval

Base and Takoradi main port.



KEY RATIOS 2017 - 2018

4.97%

5.64%

3.80%

4.30%

4.80%

5.30%

5.80%

2017 2018

Gross Profit Margin

1.96%

2.37%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

2017 2018

Operating Profit Margin

17.73%

18.68%

16.30%

16.80%

17.30%

17.80%

18.30%

2017 2018

Return on Equity

9.35

8.80

7.50

7.70

7.90

8.10

8.30

8.50

8.70

8.90

9.10

9.30

9.50

2017 2018

Fixed Asset Turnover

6.28%

6.09%

5.70%

5.80%

5.90%

6.00%

6.10%

6.20%

6.30%

6.40%

2017 2018

Return on Assets



IMPACT OF GOENERGY

GOIL GOENERGY SYNERGY

Reliable product supply

Security and quality of Product

guaranteed

Stability of pricing in the industry.

GOIL offers a ready off-taker to

Goenergy

GOIL offers parent guarantee to

Goenergy.2013 2014 2015 2016 2017 2018

13.7620.17 22.21

35.26 39.3454.11

17.36

18.39

25.75

27.83

GH

¢M

ILL

ION

GROUP NET PROFIT 2013-2018

GOIL GOENERGY


The company’s Market Capitalisation increased from GH¢130.32

million to GH¢1,222.61 million representing a 838.19% growth.

Per share Statistics 2014-2018

The company commenced trading with an IPO price of GH¢ 0.20 per

share in November 2007. The share price since then has performed

impressively.

As at the December 2018, the price has increased significantly by

1,263.64% above the first trading day share price of GH¢ 0.22.

GOIL has consistently paid dividend to shareholders since its listing on the GSE.

0.22 0.31 0.320.16 0.24 0.32

0.620.89

1.051.40 1.10

2.69

3.12

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

GH

¢

GOIL Share Price Trend since IPO

Market Statistics 2014 2015 2016 2017 2018

Issued Shares (000) 252,223 252,223 391,863 391,863 391,863

Market Captalization (GH¢ Million) 264.83 353.11 431.05 1,054.11 1,222.61

Per Share Statistics

Price (GH¢) 1.05 1.40 1.10 2.69 3.12

Earning (EPS) 0.080 0.088 0.090 0.100 0.138

Dividend (DPS) 0.016 0.020 0.008 0.016 0.018

Market Ratios

Price/Earning 13.13 15.90 12.23 26.90 22.59

Dividend Yield(%) 1.52% 1.43% 0.69% 0.61% 0.59% 264.83 353.11

431.05

1,054.11

1,222.61

-

200.00

400.00

600.00

800.00

1,000.00

1,200.00

1,400.00

2014 2015 2016 2017 2018

GH

¢ M

illi

on

Market Capitalisation 2014-2018


STOCK MARKET PERFORMANCE


Ratio Analysis – GOIL (2014-2018)


2014 2015 2016 2017 2018

5 Year

Average

Profitability Ratios

Gross Profit Margin 5.70% 5.64% 7.18% 6.32% 7.45% 6.46%

Operating Profit Margin 1.90% 1.77% 2.12% 1.83% 2.66% 2.05%

Net Profit Margin 1.30% 1.14% 1.74% 1.59% 1.76% 1.51%

Return on Equity 26.23% 23.72% 12.88% 12.87% 15.49% 18.24%

Return on Total Assets 5.92% 4.26% 4.65% 4.37% 4.92% 4.82%

Return on Capital Employed 32.32% 31.20% 15.04% 14.19% 19.70% 22.49%

Leverage Ratios

Equity Ratio 0.23 0.18 0.36 0.34 0.32 0.28

Interest Coverage 9.68 11.34 10.55 6.13 10.71 9.68

Debt/Equity 0.28 0.35 0.05 1.95 2.15 0.95

Operational Efficiency Ratios

Asset Turnover 4.54 3.75 2.67 2.74 2.80 3.30

Fixed Asset Turnover 12.88 10.49 6.71 6.03 5.85 8.39

Account Receivable Days 37.33 49.23 55.73 57.88 55.56 51.15

Inventory Days 6.71 4.80 5.66 6.56 4.13 5.57

Account Payable Days 51.07 58.79 60.55 65.54 64.02 59.99

Liquidity Ratios

Current Ratio 0.83 0.78 0.94 0.83 0.83 0.84

Quick Ratio 0.72 0.72 0.88 0.75 0.78 0.77


Ratio Analysis – Group (2015-2018)


2015 2016 2017 2018 Average

Profitability Ratios

Gross Profit Margin 3.84% 5.09% 4.97% 5.64% 4.88%

Operating Profit Margin 1.60% 1.95% 1.97% 2.37% 1.97%

Net Profit Margin 1.09% 1.54% 1.60% 1.61% 1.46%

Return on Equity 35.65% 17.33% 17.73% 18.68% 22.35%

Return on Total Assets 6.76% 6.18% 6.28% 6.09% 6.33%

Return on Capital Employed 45.27% 21.18% 21.20% 23.83% 27.87%

Leverage Ratios

Interest Coverage 18.87 16.57 10.47 14.70 15.15

Net Debt/Equity 0.29 0.04 0.00 0.15 0.12

Debt/Equity 4.27 1.81 1.82 2.07 2.49

Operational Efficiency Ratios

Asset Turnover 6.20 4.02 3.93 3.78 4.49

Fixed Asset Turnover 18.08 11.09 9.35 8.80 11.83

Account Receivable Days 30.80 38.54 36.16 38.24 35.94

Inventory Days 3.66 5.20 10.49 9.53 7.22

Account Payable Days 37.43 53.69 56.00 57.75 51.22

Liquidity Ratios

Current Ratio 0.84 1.01 0.91 0.91 0.92

Quick Ratio 0.76 0.92 0.74 0.76 0.80


Strategic Intent Strategic ObjectivesMarket Expansion

• Consolidate market leadership position in fuel marketing retailing and

increase aggregate market share.

• Continue the expansion strategy

• Diverse into strategic and profitable areas of the industry.

• Penetrate into the West African sub regional market

Operational Capacity and Service Delivery

• Continue to build and improve the physical infrastructure, human

resource capabilities and business processes for efficient and effective

service delivery.

Dynamic Subsidiaries

• Strengthen existing and create new subsidiaries to enhance business

growth for profitability and competitive advantage. .

Shareholders’ Value Maximisation

• Maximise shareholders’ wealth through sustainable growth in earnings.

To be the dominant Market

Leader in the downstream Sector

of the Petroleum industry

GOIL Strategic Direction


Bitumen Storage Depot The company is currently constructing a Bitumen storage Depot in Tema

industrial area.

Mining Diesel GOIL to penetrate into the mining sector of the petroleum industry.

Planned Projects

In line with new Government policy on LPG sales, GOIL is in the process

of constructing an LPG cylinder recirculation plant in Tema and Kumasi.

Cylinder Recirculation

Program

Upstream Oil

Exploration Partnership With ExxonMobil for Upstream Oil exploration

GOIL has identified these infrastructure as the key drivers for the achievement of it’s

strategic goal of becoming the dominant market leader in the downstream sector of the

petroleum industry in Ghana .

GOIL Strategic Direction

GOIL GROUP - Annual Reports Ghana · 2019. 12. 25. · Aggressive communication programme Increased...

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