CEMSE cautions SSNIT and BOST


The Centre for Environmental Management and Sustainable Energy (CEMSE) has sounded an alarm regarding the decline in profitability of the Ghana Oil Company Limited (GOIL).


In response, the Executive Director of CEMSE, Benjamin Nsiah, urged the two primary shareholders – the Social Security and National Insurance Trust (SSNIT) and the Bulk Oil Storage and Transportation (BOST) – to divest their shares in GOIL due to the company’s poor performance and significant losses.


Nsiah emphasized the urgency of halting the investments by the two state-owned companies in GOIL, citing the company’s inefficient structure and operations as inadequate for generating satisfactory returns on investment for BOST or SSNIT.


He asserted, “The evidence from the annual reports and performance of GOIL over the years indicates that BOST and SSNIT’s investments in GOIL are not secure or profitable. Therefore, these investments must be redirected or diversified into other ventures that can provide the necessary dividends to enhance Ghana’s social security framework and the operations of BOST.”


According to Nsiah, the decline in GOIL’s shares renders the company unattractive to potential investors, raising concerns about its future financial stability and equity value. He highlighted that dividends earned by BOST from GOIL have been consistently low, with dividends even omitted in certain years.


As major shareholders with 25% and 20% stakes respectively, SSNIT and BOST have experienced disappointing returns from GOIL, affecting their ability to fulfill operational requirements and obligations to stakeholders.


Nsiah further pointed out a significant decline in GOIL’s shareholder value, with share prices plummeting by 52% since 2018. In contrast, competitors such as TotalEnergies Marketing Ghana PLC have witnessed substantial increases in share prices, highlighting GOIL’s diminishing appeal to investors.


Additionally, Nsiah warned that GOIL’s failure to submit its audited financial statements for 2023 to the Ghana Stock Exchange by the April 22, 2024 deadline could further diminish its share price in the future, as the company would be seen as non-compliant with stock exchange regulations.



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