The Tema Oil Refinery (TOR) has recorded a net loss of GHc186.35 million from January to April 2019, according to a report by the company.

Though the 2019 TOR Variance Report, had forecast the company’s operational loss to be around GHc71.70 million for the period, a number of factors have since been identified as being responsible for the unanticipated huge loss.

The 14-page report includes commentary on the company’s liquidity situation and an update on the legacy debts and payments being made by ESLA PLC.

TOR’s four months’ liabilities amounted to GHc2, 145.64 million with the balance outstanding on its long-term loan standing at GHc267.40 million and a deferred tax of GHc19.08 million.

In spite of government injecting an additional GHc3, 488.21 million and shareholders’ funds amounting to GHc678.89 million as at the end of the first four months under review, the refinery’s liquidity position is not good.

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

Turnover for the first four months of GHc126.38 million was lower than the flexed budgeted figure of GHc170.52 million, representing 26 percent revenue shortfall below budget, and this recorded variance was as a result of a reduction in the volume of products stored in the refinery.

On the cost of sales, the report said the Ghc114.12 million incurred was more than the flexed budgeted amount of GHc91.28 million, representing a negative variance of 25 percent over the budgeted amount.

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

Operating expenses of GHc198.61 million were more than the budgeted amount of Ghc151.04 million, representing a negative variance of 31 percent.

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

The report was clear that the company is 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.

TOR’s total debt, as at April 30, 2019, was GHc1.5 billion, after ESLA PLC had paid a total amount of GHc1, 135.38 million in legacy debt repayments.