The Tema Oil Refinery (TOR) made a net loss of GH¢186.35 million in the first four months of 2019, according to the refinery’s (TOR) 2019 Variance Report.

The huge loss, according to the 2019 Variance Report for the period ended April 30, 2019, was against a budgeted loss of GH¢71.70 million.

The 14-page internal report, which was completed and submitted in June, a soft copy of which is on the shelf of The Chronicle, presented an analysis of the financial performance and situation of the company from January to April 2019.

It includes commentary on the liquidity situation and an update on the legacy debts and payments being made by ESLA Plc, which has given some life to the facility.

The explanatory notes underlying the performance was that the turnover for the period was derived from the sale of petroleum product, fees from storage, loading rack, laboratory services and product transfer fees.

In spite of the government injecting an additional GH¢3,488.21 million and shareholders’ funds amounting to GH¢678.89 million as at the end of the first four months under review, the refinery’s liquidity position is not good.

TOR’s total debt, as at April 30, 2019, was GH¢1.5 billion after ESLA Plc had paid a total amount of GH¢1,135.38 million legacy debts.

In view of this, the report was explicit that the company was having serious difficulties meeting operating expenses such as personnel cost, utility bills, insurance premiums, ground rent and land lease payments, as well as statutory payments.

For example, the report said the turnover of the first four months of GH¢126.38 million was lower than the flexed budgeted figure of GH¢170.52 million, representing 26 per cent below budget, and the recorded variance was as a result of a reduction in the volume of products stored in the refinery.

On the cost of sales, the Variance Report said GH¢114.12 million was more than the flexed budgeted amount of GH¢91.28 million, representing a negative variance of 25 per cent of the budgeted amount.

The higher cost of sales, it said, was due to a gush in international prices and higher exchange rates.

On operating expenses, GH¢198.61 million was more than the budgeted amount of GH¢151.04 million, representing a negative variance of 31 per cent of the budgeted amount.

Again, the higher operating expenses, the report said, could be attributed to the higher exchange difference recorded during the period.

TOR’s four months’ liabilities amounted to GH¢2,145.64 million, with its long-term loan standing at GH¢267.40 million, and a deferred tax of GH¢19.08 million.

Two telephone calls and an SMS sent to Dr K. Boasiako, Public Relations Manager of TOR, for a better explanation on the wobbling state of the facility, as described by the 2019 Variance Report, went unanswered.