GHANA OIL COMPANY LIMITED CONSOLIDATED FINANCIAL STATEMENTS

Transcription

1 CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2015

2 ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS CONTENTS PAGE COMPANY INFORMATION 1 REPORT OF THE DIRECTORS 2-3 REPORT OF THE AUDITOR 4-5 STATEMENT OF PROFIT OR LOSS 6 STATEMENT OF FINANCIAL POSITION 7 STATEMENT OF CHANGES IN EQUITY 8 STATEMENT OF CASH FLOWS 9 GENERAL INFORMATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES OTHER NOTES TO THE FINANCIAL STATEMENTS 26-40

3 REPORT OF THE DIRECTORS ON THE CONSOLIDATED FINANCIAL STATEMENTS In accordance with the requirements of section 132 of the Companies Act 1963 (Act 179), we the Board of Directors of Ghana Oil Company Limited, present herewith the annual report on the state of affairs of the Company and its Subsidiary for the year ended RESULTS OF OPERATIONS Group Company Company GH '000 GH '000 GH '000 Gross Sales 3,760,389 2,083,896 1,634,919 Customs Duties and Levies (129,391) (129,391) (87,890) Net Sales 3,630,998 1,954,505 1,547,029 Profit for the year 56,100 32,698 27,623 from which is deducted; provision for estimated income tax of (16,527) (10,487) (7,458) leaving a net profit after tax of 39,573 22,211 20,165 to which is added the income surplus brought forward from the previous year of 31,142 31,142 16,018 70,715 53,353 36,183 Less: final dividend paid; for 2014 at GH (5,044) (5,044) (4,034) per share (2013 at GH per share) transfer to building fund, (1,979) (1,111) (1,008) 63,692 47,198 31,141 NATURE OF BUSINESS There was no change in the principal activity of the company as detailed in Section 2 of the Company's Regulations during the year. OWNERSHIP The Company was listed on the Ghana Stock Exchange in the year The Government of Ghana owns 51% of the shares while the other 49% are owned by individuals and other corporate bodies. 2

4 REPORT OF THE DIRECTORS ON THE CONSOLIDATED FINANCIAL STATEMENTS DIRECTORS The Directors of the Company who held office during the year are as follows: Name Date Prof. William A. Asomaning Chairman Appointed Mr. Patrick Akpe Kwame Akorli Managing Appointed Mr. Thomas Kofi Manu Member Re-elected Mr. Eugene Akoto-Bamfo Member Re-elected Mr. Chris A-Ackummey Member Re-elected Nana Esuman Kwesi Yankah Member Re-elected Ms. Faustina Nelson Member Re-elected Mr. Damian Yelbonkang Zaato Member Appointed Alhaji Razak El Alawa Member Appointed Mr.Kojo Bonsu Member Retired Hon. Nii Laryea Afotey-Agbo Member Retired DIVIDEND Final dividend of GH per share amounting to GH 5,044,470 was paid during the year. A final dividend of GH per share amounting to GH 6,305,587 has been proposed for the year ended 31 December 2015, (2014: GH per share, amounting to GH 5,044,470) SUBSIDIARY Goenergy Company Limited, a company incorporated in Ghana as Bulk Distribution Company. The Company is permitted by its regulations to carry on, the business of bulk importers, storage, suppliers and bulk distributors and buyers and sellers of petroleum products. EVENTS AFTER THE REPORTING DATE The Directors confirm that no matters have arisen since December 31, 2015, which materially affect the financial statements of the company for the year ended on that date......director.....director

5 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Group Company Company Notes GH '000 GH '000 GH '000 Gross Revenue 3,760,389 2,083,896 1,634,919 Customs Duties and Levies (129,391) (129,391) (87,890) Net Revenue 3,630,998 1,954,505 1,547,029 Cost of Sales (3,491,696) (1,844,195) (1,458,913) Gross Profit 139, ,310 88,116 Sundry Income 3 4,600 4,600 4,226 Depot and Station Expenses 2a. (22,346) (22,205) (19,748) Staff, Selling & Administrative Expenses 2b. (63,625) (58,205) (43,177) Operating profit before financing cost 57,931 34,500 29,417 Net Finance Expenses 4 (1,831) (1,802) (1,793) Profit before Taxation 56,100 32,698 27,624 Income Tax Expense 5 (16,527) (10,487) (7,458) Net profit after tax attributable to equity holders of the company 39,573 22,211 20,166 Other Comprehensive Income Available - for - Sale Financial Assets 20 (832) (832) 1,082 Total Other Comprehensive Income (832) (832) 1,082 Total Comprehensive Income for the year 38,741 21,379 21,248 Earning per share (GH ) Dividend per share (GH )

6 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2015 Group Company Company NON CURRENT ASSETS Notes GH '000 GH '000 GH '000 Property, Plant and Equipment 8a 188, , ,093 Intangible Asset 12 3,670 3,670 3,133 Available for Sale Financial Instruments 9a 9,072 9,102 9,905 TOTAL NON CURRENT ASSETS 200, , ,131 CURRENT ASSETS Stocks 10 35,491 24,584 27,208 Accounts Receivable , , ,434 Held to Maturity Investments 9b 5,366 5,366 6,416 Cash and Bank Balances 13 33,070 24,867 13,644 TOTAL CURRENT ASSETS 384, , ,702 TOTAL ASSETS 585, , ,833 EQUITY Stated Capital 17 31,809 31,809 31,809 Building Fund 18 6,294 5,426 3,883 Income Surplus 19 63,692 47,198 31,141 Capital Surplus 20 9,224 9,224 10,057 TOTAL EQUITY 111,019 93,657 76,890 NON CURRENT LIABILITIES Deferred Tax 7b 4,547 4,522 2,885 Non Current Term Loan 16b 12,409 12,409 11,250 TOTAL NON CURRENT LIABILITIES 16,956 16,931 14,135 CURRENT LIABILITIES Bank Overdraft 14 67,590 67,590 16,201 Accounts Payable , , ,429 Current Portion of Term Loan 16c 20,045 20,045 10,521 Company Income Tax 7a 6, ,657 TOTAL CURRENT LIABILITIES 457, , ,808 TOTAL LIABILITIES 474, , ,943 TOTAL EQUITY AND LIABILITIES 585, , ,833 Approved by the Board on Director. Director 7

7 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY GROUP 2015 Stated Capital Building Fund Income Surplus Capital Surplus Totals GH '000 GH '000 GH '000 GH '000 GH '000 Balance at 1 January 31,809 3,883 31,142 10,056 76,890 Net profit for the year , ,573 Transfer to Building Fund 0 1,979 (1,979) 0 0 Interest Earned on Amount Invested Revaluation Loss on Available for Sale Investments (832) (832) Dividend paid 0 0 (5,044) 0 (5,044) Balance at 31 December 31,809 6,294 63,692 9, ,019 COMPANY 2015 Balance at 1 January 31,809 3,883 31,142 10,056 76,890 Net profit for the year , ,211 Transfer to Building Fund 0 1,111 (1,111) 0 0 Interest Earned on Amount Invested Revaluation Loss on Available for Sale Investments (832) (832) Dividend paid 0 0 (5,044) 0 (5,044) Balance at 31 December 31,809 5,426 47,198 9,224 93, Balance at 1 January 31,809 2,533 16,018 8,974 59,334 Net profit for the year , ,166 Transfer to Building Fund 0 1,008 (1,008) 0 0 Interest Earned on Amount Invested Revaluation Gain on Available for Sale Investments ,082 1,082 Dividend paid 0 0 (4,034) 0 (4,034) Balance at 31 December 31,809 3,883 31,142 10,056 76,890 8

8 CONSOLIDATED STATEMENT OF CASH FLOW Group Company Company Cash flow from operating activities GH '000 GH '000 GH '000 Operating Profit 56,100 32,698 27,623 Adjustment for: Depreciation and Amortisation charges 13,698 13,129 11,729 Loss/(Profit) on sale of Property, Plant and Equipment 7 7 (87) Interest and Dividend Received (1,239) (1,239) (1,246) Interest Paid 3,070 3,041 3,039 Operating Profit Before Working Capital Changes 71,636 47,636 41,058 Changes in Stocks (8,283) 2,624 (10,122) Changes in Debtors (316,914) (106,868) (63,907) Changes in Creditors 310, ,875 73,782 Cash generated from operations 56,738 46,267 40,811 Company Tax Paid (11,800) (11,800) (6,534) Net Cash Inflow from Operating activities 44,938 34,467 34,277 Cash flows from Investing activities Interest and Dividend Received 1,239 1,239 1,246 Interest paid (3,070) (3,041) (3,039) Increase in Investment Acquisition of Property, Plant and Equipment (81,832) (79,563) (60,813) Receipt from disposal of Property, Plant and Equipment Net Cash Outflows from Investing Activities (83,590) (81,322) (62,519) Net Cash Outflows Before Financing (38,652) (46,855) (28,242) Cash flows from Financing Activities Changes in Term Loan 10,683 10,683 11,542 Dividend paid (5,044) (5,044) (4,034) Net Cash Inflows from Financing Activities 5,639 5,639 7,508 Net Decrease in Cash and Cash Equivalents (33,013) (41,216) (20,734) Cash and Cash Equivalents at 1 January 3,859 3,859 24,593 Cash and Cash Equivalents at 31 December (29,154) (37,357) 3,859 Cash and Cash Equivalents Cash at Bank and in Hand 33,070 24,867 13,644 Bank Overdraft (67,590) (67,590) (16,201) Held to Maturity Investments 5,366 5,366 6,416 (29,154) (37,357) 3,859 9

9 2.a DEPOT AND STATION EXPENSES; Group Company Company GH '000 GH '000 GH '000 Includes depreciation; -GH 9,558,964 ( GH 8,736,126) b. SELLING AND ADMINISTRATION EXPENSES; Include the following:- Depreciation and Amortisation 4,139 3,569 2,993 Directors' Fees & Expenses Auditors' Remuneration Donation and Corporate Social Responsibility 3,047 2, SUNDRY INCOME Exchange Gain 1,708 1,708 1,718 Contractors Registration Miscellaneous Income 2,113 2, Various Rent ,982 Sale of Materials Profit on Sale of Property, Plant and Equipment ,600 4,600 4, NET FINANCE EXPENSES Interest Income 1,239 1,239 1,246 Bank loan interest and Other Finance Charges (3,070) (3,041) (3,039) (1,831) (1,802) (1,793) 5. TAXATION Current Tax 14,865 8,850 8,165 Deferred Tax Charge/(Credit) 1,662 1,637 (707) 16,527 10,487 7,458 26

10 6. RECONCILIATION OF EFFECTIVE TAX Group Company Company GH '000 GH '000 GH '000 Profit before tax less rent income 55,384 31,982 27,623 Tax at applicable tax rate at 25%( %) 13,846 7,996 6,906 Tax effect of non-deductible expenses 8,150 7,818 5,671 Tax effect of non-chargeable income (2,143) (2,143) (481) Tax effect of capital allowances (5,095) (4,928) (3,733) Tax effect On rent income (198) Origination/(reversal) of temporary differences 1,662 1,637 (707) 16,527 10,487 7,458 Effective tax rate (%) a. CURRENT TAX Balance at Tax Paid/ Charge/ Balance at GROUP 1 January Refund Credit to P&L 31 Dec. GH '000 GH '000 GH '000 GH ' to ,564 (6,100) 0 (2,536) (5,700) 14,865 9,165 Total 3,657 (11,800) 14,865 6,722 COMPANY 2010 to ,564 (6,100) 0 (2,536) (5,700) 8,850 3,150 Total 3,657 (11,800) 8, Tax position up to 2009 year of assessment have been agreed with the tax authorities. The remaining liabilities are however subject to agreement with the tax authorities. The amount provided for Income Tax is calculated at the rate of 25% of the Adjusted Profit and is subject to agreement with Ghana Revenue Authority. 7b. DEFERRED TAXATION Balance at 1 January 2,885 2,885 3,592 Charge/(Credit) for the year 1,662 1,637 (707) Balance at 31 December 4,547 4,522 2,885 Deferred income taxes are calculated on all temporary differences under the liability method using a principal tax rate of 25% ( %). 27

11 8a PROPERTY, PLANT AND EQUIPMENT GROUP F'HOLD L'SEHOLD PLANT CAPITAL LAND & LAND & MACH. & MOTOR FURN. & COMPUTERS WORK IN BUILDINGS BUILDINGS EQUIP. VEHICLES EQUIP. & ACCESS. PROGRESS TOTAL Cost / Valuation GH '000 GH '000 GH '000 GH '000 GH '000 GH '000 GH '000 GH '000 Balance at ,195 87,941 51,168 8,376 2, , ,055 Additions during the year 0 5,436 13,611 4,907 1, ,965 80,502 Transfers during the year 0 9,556 4, (14,009) 0 Disposals during the year (574) (574) Balance at , ,933 69,117 12,709 3,686 1,530 55, ,983 Depreciation Balance at ,269 31,164 5,215 1, ,963 Charges during the year 24 2,266 7,269 2, ,503 Disposal during the year (524) (524) Balance at ,535 38,433 7,042 1,706 1, ,942 Net Book Value 31 December ,102 92,398 30,684 5,667 1, , , December ,126 79,672 20,004 3,161 1, , ,093 Fixed Assets were valued in 1985 and Landed properties, Furniture and equipment, Plant, machinery and equipment were again revalued in December 1999 and in December 2000 on Open Market basis by Owusu Adjapong and Company and messrs Propicon. 28

12 8b PROPERTY, PLANT AND EQUIPMENT COMPANY F'HOLD L'SEHOLD PLANT CAPITAL LAND & LAND & MACH. & MOTOR FURN. & COMPUTERS WORK IN BUILDINGS BUILDINGS EQUIP. VEHICLES EQUIP. & ACCESS. PROGRESS TOTAL Cost / Valuation GH '000 GH '000 GH '000 GH '000 GH '000 GH '000 GH '000 GH '000 Balance at ,195 87,941 51,168 8,376 2, , ,055 Additions during the year 0 5,436 13,612 3, ,965 78,234 Transfers during the year 0 9,556 4, (14,009) 0 Disposals during the year (574) (574) Balance at , ,933 69,118 10,836 3,426 1,394 55, ,715 Depreciation Balance at ,269 31,164 5,215 1, ,962 Charges during the year 24 2,266 7,269 1, ,934 Disposal during the year (524) (524) Balance at ,535 38,433 6,574 1,672 1, ,372 Net Book Values 31 December ,102 92,398 30,685 4,262 1, , , December ,126 79,671 20,004 3,161 1, , ,093 Fixed Assets were valued in 1985 and Landed properties, Furniture and equipment, Plant, machinery and equipment were again revalued in December 1999 and in December 2000 on Open Market basis by Owusu Adjapong and Company and Messrs Propicon. 29

13 9a AVAILABLE FOR SALE FINANCIAL INSTRUMENTS Group Company Company GH '000 GH '000 GH '000 Ghana Bunkering Services Ltd Investment in Subsidiary Total (Ghana) Ltd. 5,515 5,515 6,347 Tema Lube Oil Company Ltd Metro Mass Transit Company Limited JUHI 2,910 2,910 2,911 9,072 9,102 9,905 Available for sale financial instruments of the above companies are made up of equity shares. 9b HELD TO MATURITY INVESTMENT Fixed Deposit 5,366 5,366 6, STOCKS & GOODS IN TRANSIT Trading : Fuel 12,381 3,747 1,427 Lubricants 14,181 14,181 18,485 L.P. Gas ,032 18,398 20,012 Non Trading : Materials 8,459 6,186 6,944 35,491 24,584 26,956 Goods in Transit ,491 24,584 27, ACCOUNTS RECEIVABLE Trade Receivable 275, , ,113 Other Receivable 36,518 36,518 39,526 Staff Receivable Prepayments 1,679 1,659 1, , , ,189 Less: Provision for Bad & Doubtful Debts (3,660) (3,660) (1,755) 310, , ,434 The maximum amount owed by the staff in thousands of Ghana Cedis did not at one particular time exceed : 2015 GH 686 (2014: GH 593) Prepayments - This represents the unexpired portion of certain expenditure spread on a time basis. 30

14 Group Company Company INTANGIBLE ASSETS GH '000 GH '000 GH '000 Balance at 1 January 4,965 4,965 3,128 Additions during the year 1,732 1,732 1,837 Balance at 31 December 6,697 6,697 4,965 Amortisation Balance at 1 January 1,832 1, Amortisation for the year 1,195 1, Balance at 31 December 3,027 3,027 1,832 Carrying amount At 31 December 3,670 3,670 3,133 This relate to the cost of rebranding and Computer Software. 13. CASH AND BANK BALANCES Current Account 32,133 24,653 13,302 Cash in Hand BANK OVERDRAFT 33,070 24,867 13,644 Ghana Commercial Bank Limited 3,335 3,335 4,315 Universal Merchant Bank Limited 15,466 15,466 3,723 Prudential Bank Ghana Limited 20,655 20, First Atlantic Bank Limited 20,203 20,203 7,282 Ecobank Ghana Limited 7,730 7,730 0 Stanbic Bank Ghana Limited Ghana Commercial Bank Limited Universal Merchant Bank Limited 67,590 67,590 16,201 Prudential Bank Ghana Limited The company has an overdraft facility of GH 6,000,000 with Prudential Bank Ghana Limited at an interest rate of 26.50% and the facility expires on 31 December, First Atlantic Bank Limited Ecobank Ghana Limited The company has an overdraft facility of GH 20,000,000 with Ghana Commercial Bank Limited at an interest rate of 25.50% and the facility expires on 31 October, The company has an overdraft facility of GH 10,000,000 with Universal Merchant Bank Limited at an interest rate of 28.85% and the facility expires on 31 December, The company has an overdraft facility of GH 5,000,000 with First Atlantic Bank Limited at an interest rate of 26.47% and the facility expires on 31 July, The company has an overdraft facility of GH 5,000,000 with Ecobank Ghana Limited at an interest rate of 25.95% and the facility expires on 31 December,

15 Group Company Company ACCOUNTS PAYABLE GH '000 GH '000 GH '000 Trade Payable 282, , ,198 Other Payable 79,199 66,489 24,253 Accruals 1, ,978 16a TERM LOAN 363, , ,429 Balance as at I January 21,771 21,771 10,229 Addition during the year 22,998 22,998 15,000 Loan repayment (12,315) (12,315) (3,458) 32,454 32,454 21,771 16b LONG TERM PORTION Medium Term Loan 12,409 12,409 11,250 16c SHORT TERM PORTION 12,409 12,409 11,250 Government of Ghana 3,780 3,780 3,780 Medium Term Loan 16,265 16,265 6,741 20,045 20,045 10,521 The Government of Ghana Loan (Goil Subsidiary Loan) was rescheduled in the year 2007 and repayable in seven (7) years with four years grace period commencing The facility expires on 31 December, First Atlantic Bank The bank granted a medium term loan facility of GH 15,000,000 to the company. The facility is due to expire on August, 2018 and interest rate was 26.47% per annum (subject to review in line with market conditions). The facility is to refinance the company's capital expenditure. GCB Bank Limited The bank granted a medium term loan facility of GH 15,000,000 to the company. The facility is due to expire on October, 2016 and interest rate is 182 day Treasury Bill Rate plus 0.5% per annum to be re-priced every six months. The facility is to finance working cpital shortfall resulting from exchange losses. Stanbic Bank Ghana Limited The Company has been granted a Medium Term Loan of USD$5,161,280 by Stanbic Bank Ghana Limited, for general corporate purposes including capital expenditure for new Service Stations and Rebranding exercise. The loan is to be repaid in full over a period of five (5) years with six (6) months moratorium. Interest rate is 6.4% fixed per annum. With respect to security the aggregate of all amounts deemed by the Bank to be outstanding under the facility shall be on an unsecured basis. However, the Bank reserves the right to review the facility from time to time and thereafter call for security should it be considered necessary. 32

16 STATED CAPITAL Number of authorised shares 1,000,000,000 1,000,000,000 Total number of issued shares 252,223, ,223,488 GH '000 GH '000 Issued for Cash 5,000 5,000 issued for consideration other than cash 6,559 6,559 Transfer from Income Surplus 20,250 20,250 There is no unpaid liability on any share and there are no shares in treasury. 31,809 31, BUILDING FUND This is an amount set aside from profits for the construction of Head Office Building. Balance at 1 January 3,883 2,534 Transfer from Income Surplus 1,979 1,008 Interest earned on amount invested Balance at 31 December 6,294 3, INCOME SURPLUS This represents the residual of cumulative annual profits that are available for distribution to shareholders. 20. CAPITAL SURPLUS This is surplus arising from the revaluation of property, plant and equipment in 1985, 1988 and 2000 by Owusu-Adjapong and Company and Messrs Propicon. It also includes movements in the market price of available for sale financial assets of 100,000 shares held in Total Petroleum Ghana Limited as a result of the adoption of International Financial Reporting Standards. Available-forsale Financial Asset Revaluation surplus GH GH GH GH Balance at 1 January ,150 3,906 10,056 8,975 Revaluation (832) 0 (832) 1,082 Balance at 31 December ,318 3,906 9,224 10, DIVIDEND Final Dividend paid was GH per Share (2013; GH ,044 4,034 per Share) Payments during the year (5,044) (4,034) 0 0 A final dividend of GH per share amounting to GH 6,305,587 has been proposed for the year ended 31 December (2014: GH per share, amounting to GH 5,044,470) 33

17 22 FINANCIAL RISK MANAGEMENT (GROUP) The company has exposure to the following risks from its use of financial instruments; ^ Credit risk ^ Liquidity risk ^ Market risk This note presents information about the company's exposure to each of the above risks, the company's objectives, policies and processes for measuring and managing risk, and the company's management of capital. Risk management framework The Board of Directors has overall responsibility for the establishment and oversight of the company's risk management framework. The Board has established the Audit and Finance committee, which are responsible for developing and monitoring the company's risk management policies in their specified areas. The team includes selected members of executive management and report regularly to the Board of Directors on their activities. The company's risk management policies are established to identify and analyse the risks faced by the company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions, products and services offered. The company, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations. The company's Audit and Finance Committee is responsible for monitoring compliance with the company's risk management policies and procedures, and for reviewing the adequacy of risk management framework in relation to the risks faced by the company. This committee is assisted in these functions by a risk management structure in all the units of the company which ensures a consistent assessment of risk management control and procedures. Credit risk Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the company's receivables from customers. Trade and other receivables The company's exposure to credit risk is minimised as all sales are made to one individual customer. The company has transacted business with this customer over the years, there has not been much default in payment of outstanding debts. Allowances for impairment The company establishes an allowance for impairment losses that represents its estimate of incurred losses in respect of risk and other receivables. The main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loan loss allowance established for homogeneous assets in respect of losses that have been incurred but not yet been identified. The collective loss allowance is determined based on historical data of payment for similar financial assets. 34

18 Exposure to credit risks (Group) The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was; Group Company Company GH '000 GH '000 GH '000 Available for sale Financial Assets 9,072 9,102 9,905 Loans and Receivables 310, , ,434 Cash and Cash Equivalents 33,070 24,867 13, , , ,983 The maximum exposure to credit risk for trade receivables at the reporting date by type of customer was; Public Institutions 275, , ,113 Impairment Losses (Group) Gross Impairment Gross Impairment GH '000 GH '000 GH '000 GH '000 Past due after days 275, ,113 0 The movement in the allowance in respect of trade receivables during the year was as follows GH '000 GH '000 Trade Receivables 275, ,113 Impairment loss recognised (3,660) (1,755) Balance at 31 December 271, ,358 Based on historical default rates, the company believes that no impairment is necessary in respect of trade receivables past due up to 180 days. Liquidity risk Liquidity risk is the risk that the company either does not have sufficient financial resources available to meet all its obligations and commitments as they fall due, or can access them only at excessive cost. The company's approach to managing liquidity is to ensure that it will maintain adequate liquidity to meet its liabilities when due. 35

19 The following are contractual maturities of financial liabilities (Group); 31 December 2015 Non-derivative financial liability Amount 6 mths or less 6-12 mths 1-3 years GH '000 GH '000 GH '000 GH '000 Secured bank loans 32,454 10,023 10,023 12,409 Trade and other payables 363, , Bank overdraft 67,590 67, Balance at 31 December , ,653 10,023 12, December 2014 Non-derivative financial liability Amount 6 mths or less 6-12 mths 1-3 years GH '000 GH '000 GH '000 GH '000 Secured bank loans 21,771 5,260 5,261 11,250 Trade and other payables 219, , Bank overdraft 16,201 16, Balance at 31 December , ,890 5,261 11,250 Market risks Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the company's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. Foreign currency risk The company is exposed to currency risk as there are transactions and balances denominated in currencies other than the functional currency. Interest rate risk Profile At the reporting date the interest rate profile of the company's interest-bearing financial instruments was; Carrying amount Variable rate instrument GH '000 GH '000 Financial liabilities 100,044 37,972 Fair value sensitivity analysis for fixed rate instrument The company did not have fixed rate instrument at 31 December 2015 and also at 31 December

20 23 FAIR VALUES (GROUP) Fair values versus carrying amounts The fair values of financial assets and liabilities, together with carrying amounts shown in the balance sheet are as follows; 31 December December 2014 Carrying Carrying Amount Fair Value Amount Fair Value Loans and Receivables GH '000 GH '000 GH '000 GH '000 Trade and Other Receivables 310, , , ,434 Cash and Cash Equivalents 33,070 33,070 13,644 13,644 Held to Maturity Investments 5,366 5,366 6,416 6, , , , ,494 Available for Sale Financial Instrument Long Term Investment 9,072 9,072 9,905 9,905 Other Financial Liabilities Secured Bank Loan 32,454 32,454 21,771 21,771 Trade and Other Payables 363, , , ,429 Bank Overdraft 67,590 67,590 16,201 16, , , , , CAPITAL COMMITMENTS There were no commitments for capital expenditure at the balance sheet date as at 31 December 2015 and also as at 31 December EMPLOYEE BENEFITS Deferred Contribution Plans Social Security Under a National Deferred Benefit Pension Scheme, the company contributes 13% of employee basic salary to the Social Security and National Insurance Trust (SSNIT) for employee pension. The company's obligation is limited to the relevant contribution, which were settled on due dates. The pension liabilities and obligations however, rest with SSNIT. Provident Fund The company has a provident fund scheme for the staff under which the company contributes a total of 10% of staff basic salary. The obligation under the plan is limited to the relevant contribution and these are settled on the dates to the fund manager. 37

21 Group Company RELATED PARTY TRANSACTIONS GH '000 GH '000 Payable 166,686 0 This represents petroleum products purchased from Goenergy Company Limited which is wholly owned by Ghana Oil Company Limited during the year. The amounts owed to the subsidiary is unsecured, interest free, and have no fixed term of repayment. The balance will be settled in cash. No guarantees have been given or received. Remuneration of Executive Director and other key management personnel Salaries and other short term benefits 1,782 1,389 Employer social security charges on emoluments ,013 1, NUMBER OF SHARES IN ISSUE Earning, Dividend per share are based on 252,223,488, (2014; 252,223,488). 28. BASIC EARNINGS PER SHARE (GROUP) Basic earnings per share is calculated by dividing the net profit attributable to equity holders of the company by the weighted average number of ordinary shares in issue during Profit attributable to equity holders 39,573 22,211 Weighted average number of ordinary shares ('000) 252, ,223 Basic earnings per share (Ghana cedis per share) CONTINGENT LIABILITIES Claims that could arise from pending suits against the company at the year-end amounted to GHȼ180,000 (2014; GHȼ nil) 38

22 30. TWENTY LARGEST SHAREHOLDERS Shareholders Number of Percentage Shares Holding (%) 1 GOVERNMENT OF GHANA 128,889, SOCIAL SECURITY & NATIONAL INSURANCE TRUST 46,699, PETROGULF GHANA LIMITED 12,587, THE QUANTUM GROUP LIMITED 9,960, HOPEFIELD CAPITAL LIMITED 8,229, MR. DANIEL OFORI 1,091, SCBN/ELAC POLICY HOLDERS FUND 910, SCGN/RBC HYPOSWISS (LUX) FUND-AFRICA 456, SCBN/DATABANK BALANCE FUND LTD. 453, MR VICTOR KWADWO DJANGMAH 412, DONEWELL LIFE COMPANY LIMITED 384, ZHAO HAIJUN 368, STD NOM/METLIFE CLASSIC FUND 341, SIC GENERAL BUSINESS 300, GLICO GEN. INSURANCE COMPANY LIMITED 268, SCGN/PETRA ADVANTAGE PORTFOLIO 246, SCGN/ENTERPRISE PIER 2 OCCUPATIONAL 239, HFCN/EDC GHANA BALANCE FUND LIMITED 231, OPARE-SEM DANIEL KWADWO MR. 200, SCBN/SAS FORTUNE FUND 186, TOTALS OF TWENTY LARGEST SHAREHOLDERS 212,459, TOTALS OF OTHERS 39,764, GRAND TOTALS 252,223,

23 31. SHAREHOLDING DISTRIBUTION Category Numbers of Total Percentage Shareholding Holding Holding (%) 1-1,000 8,379 3,997, ,001-5,000 5,133 9,954, ,001-10, ,343, ,001-50, ,826, , ,999, ,102, ,223, DIRECTORS SHAREHOLDING NAME NUMBER OF % OF ISSUED SHARES SHARES Prof. William A. Asomaning 20, Nana Esuman Kwesi Yankah 5, Mr. Eugene Akoto-Bamfo 4, Mr. Thomas Kofi Manu 12, Mr. Chris A. Ackummey 2, Ms. Faustina Nelson 79, Mr. Patrick Kwame Akorli 138, ,