GOIL GROUP Facts Behind the Figures May 2019 Presentation to the Ghana Stock Exchange Table of Content
1 Introduction 3
2 Background of GOIL 6
3 Corporate Performance 12
4 Strategic Direction 22
This document is prepared by Ghana Oil Company Limited 2 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
This document is prepared by Ghana Oil Company Limited 3 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.
This document is prepared by Ghana Oil Company Limited 4 Introduction This is GOIL today:
This document is prepared by Ghana Oil Company Limited 5 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.
This document is prepared by Ghana Oil Company Limited 6 Background of GOIL
Our vision is to be a world-class provider of goods and services in the petroleum and other areas of the energy industry.
VISION & Our mission is: MISSION 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
This document is prepared by Ghana Oil Company Limited 7 Background of GOIL
Subsidiaries Shareholding Structure GOENERGY Limited, a Bulk Oil Distribution Name of Shareholder Holdings Company (BDC), whose operations are to distribute Government of Ghana 34.23% petroleum products to Oil Marketing Companies (OMC’s); Social Security and National Insurance Trust 25.00% Bulk Oil Storage and Transport 20.03% GOIL Offshore Limited, an offshore company to provide offshore bunkering facilities to rigs, vessels and Others 20.74% oil tankers as well as engaging in upstream activities. Total 100% GO Financial Services Limited to provide electronic payment system and money transfer services.
This document is prepared by Ghana Oil Company Limited 8 Background of GOIL
The company's main business is marketing and distribution of petroleum products in Ghana.
Fuels Marketing LPG Bunkering
ATK Bitumen Lubricants GoCard
This document is prepared by Ghana Oil Company Limited 9 BACKROUND OF GOIL
Depots Marketing Arms
Zonal Office North
Zonal Office Zonal Office Upper Middle Tamale West Belt Buipe Zonal Office Middle Belt
Kumasi Zonal Office Zonal Office Tema South East
Tema Takoradi Zonal Office Accra South
This document is prepared by Ghana Oil Company Limited 10 10 Background of GOIL
HISTORICAL TIMELINE
1960 1968 1974 1976 2007 2010 - 2012 2013- 2016 2018
Government of The company was incorporated Conversion from Private Ghana acquired Incorporation of: as a Private Limited Liability Limited Liability Company shares of AGIP SPA Company on June 14, 1960 as to a Public Company and and Hydrocarbons GOENERGY Limited AGIP Ghana Company Limited. Listing on the Ghana International GOIL Offshore Limited The shareholders were AGIP Stock Exchange SPA of Italy and SNAM S.P.A Holdings GO Financial Services Special resolution is Rebranding started in passed and name of 2010, implemented in SNAM S.P.A. Company changed 2011 and launched in Partnered with transferred its shares to Ghana Oil 2012. ExxonMobil for to Hydrocarbons Company Limited upstream oil International Holdings exploration
This document is prepared by Ghana Oil Company Limited 11 Corporate Performance PRODUCT PERFORMANCE Products Sales Volume (Metric Tonnes)
350,000 300,000 250,000 200,000 150,000 100,000 50,000 - 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
Product Market Share Ranking Petroleum Product 2014 2015 2016 2017 2018 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
This document is prepared by Ghana Oil Company Limited 12 Corporate Performance PRODUCT PERFORMANCE Product Market Share Gasoline Market Share 2014-2018 25.0% 22.0% 22.2% 19.7% 20.0% 16.4% 15.0% 13.4% GOIL Aggregate Market Share 2014-2018 10.0% 20.00% 18.20% 18.30% 18.00% 16.68% 5.0% 15.77% 16.00% 0.0% 14.04% 2014 2015 2016 2017 2018 14.00% 12.00% 10.00% Gasoil Market Share 2014-2018 8.00% 6.00% 30.0% 24.7% 24.6% 4.00% 25.0% 20.3% 2.00% 20.0% 18.3% 14.9% 0.00% 15.0% 2014 2015 2016 2017 2018 10.0% 5.0% 0.0% 2014 2015 2016 2017 2018
This document is prepared by Ghana Oil Company Limited 13 Corporate Performance FINANCIAL PERFORMANCE 2014-2018 Sales Revenue 2014 - 2018 Net Profit 2014 - 2018 4,000 99.12% Growth 3,081 60,000 54,114 3,000 2,468 50,000 168.34% Growth
Millions 39,335 1,955 2,028 40,000 35,256 2,000 1,547 GH¢ 30,000 20,166 22,211 1,000 GH¢ ‘000 GH¢ 20,000 10,000 - 2014 2015 2016 2017 2018 - 2014 2015 2016 2017 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 2014 - 2018 1,500 222.59% Growth 1,100 901 1,000 758 521
GH¢ Millions GH¢ 500 341
- 2014 2015 2016 2017 2018
Total assets increased from GH¢340.83 million to GH¢1,099.50 million.
This document is prepared by Ghana Oil Company Limited 14 Corporate Performance
FINANCIAL PERFORMANCE 2017-2018 Net Revenue - GOIL Net Revenue - GROUP 3,500 3,080.51 Income Statement Highlights 3,000 5,500 4,078.5 5,091.62 2,467.87 6 Group Company Million 2,500 4,500 2018 2017 Growth 2018 2017 Growth 2,000 3,500 GH¢ GH¢ 1,500 GH¢'000 GH¢'000 GH¢'000 GH¢'000 2,500 1,000 Million GH¢ 1,500 Net Revenue 5,091,624 4,078,563 24.84% 3,080,508 2,467,872 24.82% 500 500 Gross Profit 287,135 202,807 41.58% 229,532 155,907 47.22% 0 2017 2018 -500 2017 2018 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% Net Profit - GOIL Net Profit - GROUP 60 54.11 100 81.95 Revenue growth is driven by: 50 39.34 80 65.09 • strong performance in the Retail Sector and Bunkering 40 60
as well as aggressive marketing campaign resulting in 30 GH¢ GH¢ Million increase in sales volume GH¢ Million 40 20 20 • Profit is driven by increase in margins and cost 10 management 0 0 2017 2018 2017 2018
This document is prepared by Ghana Oil Company Limited 15 Corporate Performance
FINANCIAL POSITION 2017 - 2018 Total Assets - GOIL Total Assets - GROUP 1,099. 1,345. 1,500 51 1,200 50 1,036. 1,000 900.53 51 1,000 Million 800
Balance Sheet Highlights 600 GH¢ Million GH¢ GH¢ GH¢ 400 500 Group Company 200 2018 2017 Growth 2018 2017 Growth 0 0 GH¢'000 GH¢'000 GH¢'000 GH¢'000 2017 2018 2017 2018 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 Liabilities - GOIL Total Liabilities - GROUP Total Equity 438,649 367,067 19.50% 349,308 305,559 14.32% 800 750.20 1,000 906.86 594.97 600 Asset growth driven by: 800 669.44
• Acquisitions and takeovers of distressed competitor 400 600 GH¢ Million GH¢
stations at strategic locations. Million GH¢ 400 • 200 Joint venture partnerships in station development. 200 • Investment in bunkering facilities at Sekondi Naval 0 0 Base and Takoradi main port. 2017 2018 2017 2018
This document is prepared by Ghana Oil Company Limited 16 Corporate Performance
KEY RATIOS 2017 - 2018 Return on Equity Gross Profit Margin Operating Profit Margin 18.68% 5.80% 5.64% 2.50% 2.37% 1.96% 18.30% 2.00% 5.30% 17.73% 4.97% 17.80% 1.50% 4.80% 1.00% 17.30%
4.30% 0.50% 16.80%
3.80% 0.00% 16.30% 2017 2018 2017 2018 2017 2018
Return on Assets Fixed Asset Turnover 6.40% 9.50 9.35 6.28% 9.30 6.30% 9.10 6.20% 8.90 8.80 6.09% 6.10% 8.70 8.50 6.00% 8.30 5.90% 8.10 5.80% 7.90 7.70 5.70% 2017 2018 7.50 2017 2018
This document is prepared by Ghana Oil Company Limited 17 Corporate Performance
IMPACT OF GOENERGY GROUP NET PROFIT 2013-2018
GOIL GOENERGY SYNERGY GOIL GOENERGY . Reliable product supply . Security and quality of Product guaranteed 27.83
. Stability of pricing in the industry. 25.75 . GOIL offers a ready off-taker to 18.39 MILLION 17.36 Goenergy 54.11 . GH¢ 35.26 39.34 GOIL offers parent guarantee to 20.17 22.21 Goenergy. 13.76 2013 2014 2015 2016 2017 2018
This document is prepared by Ghana Oil Company Limited 18 Corporate Performance STOCK MARKET PERFORMANCE 3.50 GOIL Share Price Trend since IPO 3.12 The company commenced trading with an IPO price of GH¢ 0.20 per 3.00 2.69 share in November 2007. The share price since then has performed 2.50 impressively. 2.00 1.40 1.10
GH¢ GH¢ 1.50 1.05 0.89 As at the December 2018, the price has increased significantly by 1.00 0.62 0.32 0.32 1,263.64% above the first trading day share price of GH¢ 0.22. 0.50 0.22 0.31 0.16 0.24 0.00 Per share Statistics 2014-2018 Market Statistics 2014 2015 2016 2017 2018 Issued Shares (000) 252,223 252,223 391,863 391,863 391,863 The company’s Market Capitalisation increased from GH¢130.32 Market Captalization (GH¢ Million) 264.83 353.11 431.05 1,054.11 1,222.61 million to GH¢1,222.61 million representing a 838.19% growth. Per Share Statistics Price (GH¢) 1.05 1.40 1.10 2.69 3.12 Market Capitalisation 2014-2018
Earning (EPS) 0.080 0.088 0.090 0.100 0.138 1,400.00 1,222.61 Dividend (DPS) 0.016 0.020 0.008 0.016 0.018 1,200.00 1,054.11 Market Ratios 1,000.00 800.00 Price/Earning 13.13 15.90 12.23 26.90 22.59 600.00 431.05 353.11 Dividend Yield(%) 1.52% 1.43% 0.69% 0.61% 0.59% 400.00 264.83 GH¢ Million GH¢ 200.00 - 2014 2015 2016 2017 2018
GOIL has consistently paid dividend to shareholders since its listing on the GSE.
This document is prepared by Ghana Oil Company Limited 19 Corporate Performance Ratio Analysis – GOIL (2014-2018) 5 Year 2014 2015 2016 2017 2018 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
This document is prepared by Ghana Oil Company Limited 20 Corporate Performance 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
This document is prepared by Ghana Oil Company Limited 21 GOIL Strategic Direction Strategic Intent Strategic Objectives Market 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 To be the dominant Market • Continue to build and improve the physical infrastructure, human Leader in the downstream Sector resource capabilities and business processes for efficient and effective of the Petroleum industry 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.
This document is prepared by Ghana Oil Company Limited 22 GOIL Strategic Direction Planned Projects
Mining Diesel GOIL to penetrate into the mining sector of the petroleum industry.
Cylinder Recirculation In line with new Government policy on LPG sales, GOIL is in the process Program of constructing an LPG cylinder recirculation plant in Tema and Kumasi.
Bitumen Storage Depot The company is currently constructing a Bitumen storage Depot in Tema industrial area.
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 .
This document is prepared by Ghana Oil Company Limited 23 This document is prepared by Ghana Oil Company Limited 24