Total Petroleum Ghana Limited recorded a 63% growth in net profit for the year 2020

Total Petroleum Ghana Limited (TOTAL.gh) 2020 Abridged Report

Chairman’s Statement

Introduction

Distinguished Shareholders, Ladies and Gentlemen, it is my pleasure to welcome you all to the 45th Annual General Meeting (AGM) of your Company, Total Petroleum Ghana PLC. It is indeed an honour to address you and to present to you the Director’s Annual Report and the Audited Financial Statements of the Company for the year ended 31st December 2020.

The global and national effect of the COVID-19 Pandemic in the past year was unprecedented. We have all been affected one way or the other by this Pandemic but we are thankful that we now have the vaccines and hope that the vaccines will tone down Covid-19’s negative impact. For those of you, our Shareholders who have lost family members, friends, colleagues and loved ones as a result of the Pandemic, please accept my heartfelt condolences. We continue to pray that the steps being taken by all of us, under the direction of the Health Authorities, to curb the spread of the Virus will yield some positive results so that we can go back to some semblance of normalcy in our lives.

At this meeting, we will be reviewing your Company’s performance for the year ended 31st December, 2020; a challenging year due to the Pandemic. We will also present to you some of our future business plans aimed at developing the business of the Company. As Directors, and on behalf of Management and Staff, we do appreciate the confidence you continue to have in us. We remain committed and focused in taking decisions and actions that will promote and ensure the continuous growth of the Company with the resultant positive returns on our Shareholder’s investment.

Review of Economic Environment

The macroeconomic indicators of the Ghanaian economy remained positive in 2020, notwithstanding the uncommon market conditions (lockdown period in Greater Accra and in Kumasi, closure of borders, airport closure, and various transport restrictions) and a major Oil &Gas international crisis resulting in a high crude volatility.

The Ghanaian Cedi underwent a 4% depreciation against the US dollar in 2020 which was lower than in 2019. The Bank of Ghana prime rate ended the year at 14.5%.

Financial and Operational Performance

The Group recorded a 63% growth in net profit for the year 2020, a performance attributed to the efforts and action plans set by Management and the Board of Directors.

The consolidated profit after tax for 2020 amounted to GH¢112.3 million compared to GH¢68.7 million in 2019, whilst the Company’s profit after tax amounted to GH¢113.6 million compared to GH¢69.3 million in 2019.

The Group’s basic earnings per share increased from GH¢0.6230 in 2019 to GH¢1.0211 in 2020.

It is worth mentioning that the business impact of the COVID-19 Pandemic was compensated in 2020 by fruitful investments, sales dynamism, cost control and operational efficiency.
The Company remained steadfast through its continued investments, in line with the strategy to identify new business opportunities and to improve the quality of its assets. Most notably, we have opened new service stations nationwide and launched initiatives, such as building solar panels at some of our stations to generate power for operations.

The Company received the following awards in recognition for its outstanding performance and contribution to the Ghanaian economy in 2020:

• 7th Best Company of the Year – Ghana Club 100 Awards
• Lubricant Product of the Year – Ghana Oil & Gas Awards
• Petroleum Company of the Year – Chartered Institute of Marketing, Ghana
• Off-Grid Energy Solution of the Year – Ghana Energy Awards 2019
• Brand of the Year – Ghana Oil & Gas Awards Dividend

Despite these uncertain and challenging times, in October 2020, the Board approved the payment of an interim dividend of GH¢7.764 million, which represented GH¢0.0694 per share which was paid to Shareholders in December, 2020.

At this meeting, the Board will be recommending for your consideration, payment to Shareholders of a final dividend of GH¢19.399 million which represents GH¢0.1734 per share in respect of the year ended 31st December, 2020. This brings the total dividend for Shareholders for the year ended 31st December, 2020 to GH¢27.163 million representing GH¢0.2424 per share. The final dividend, if approved, will be paid to Shareholders at the end of June, 2021 subject to withholding tax where applicable.

Board Changes

At this Meeting, we will be recommending to you for reelection, three (3) of our Directors namely, Mr. Alain Vedier, Mr. Stanislas Mittelman and Mrs. Laurette Otchere. Each of these Directors is due to retire by rotation at this meeting and have expressed their willingness to continue in office.

Corporate Governance

Corporate Governance remains key to our business and the Company continues with its policy of zero-tolerance for non-compliance in all its business activities. The Company demands high standards from its Directors and Top Management, who have the duty to ensure that robust corporate governance systems and structures are maintained and adhered to by all, in order to guarantee
the sustainability of this Company. Furthermore, our Company’s staff, Contractors, Dealers, and Business Partners are regularly trained on the Company’s Code of Ethics and Conduct to ensure compliance by all.

In line with Shareholders’ approval at our last meeting and in compliance with the new Companies Act, 2019 (Act 992), we have also successfully changed the Company’s name from Total Petroleum Ghana Limited to Total Petroleum Ghana PLC.

Health and Safety

The Company has been ISO certified since 2005 and currently operates with ISO-9001:2015 standards. Health, Safety, Environment and Quality remains a core value for the Group and the Company, and is closely monitored. We are continuously focused on ensuring a safe and healthy workplace for our employees and service providers, and are committed to managing our activities to protect our host communities.

In 2020, special attention was placed at Company level with the roll-out of the Total Group’s One Maestro framework (Management and Expectation Standards Towards Robust Operations) which is aimed at continuously improving our Health, Safety, Environment & Quality systems whilst creating awareness amongst our staff and all our business partners.

At the same time, a dedicated action plan has been put in place to mitigate the impact of the COVID-19 Pandemic on our operations and to protect our staff, our service station personnel, and our various stakeholders who visit our business premises.

Corporate Social Responsibility

As part of its corporate social responsibilities (CSR), several donations were made to some communities, organisations, and the Company’s customers to support the general efforts by all to fight and protect us all from the COVID-19 Pandemic. GH¢100,000 worth of fuel was donated to the COVID-19 National Trust Fund and items such as nose masks, liquid soap, paper towels, veronica buckets, and hand sanitizers amongst others were also distributed throughout the year by the Company to various Drivers Unions across the country with the support of our service station dealers.

On another note, the Company seeks to ensure that its operations have a positive impact on all aspects of the Ghanaian Society. To this end, the Company continues to focus on Entrepreneurship, Education, Youth Support, and Environment.

Some highlights of the Company’s CSR activities in 2020 were:

• Young Dealer Scheme, which gives an opportunity to the Company’s best Service Station attendants to become Service Station Dealers;
• Young Graduate Program, which targets University Graduates and offers a training program of six (6) months in Ghana followed by a further twelve (12) months international training contract with  another Total affiliate, either within Africa or at the Head office in Paris;
• Recycling initiative with the IRecycle Project in collaboration with Voltic Ghana Limited and Coliba Ghana Limited to collect plastic waste within Accra and Tema. Recycle bins have therefore been located in some Total Stations for this purpose;
• Entrepreneurship in collaboration with Mckingtorch Africa, who was also one of the finalists of our Startupper Challenge in 2018.

Outlook

The Board and Management of your Company continue to maintain a positive outlook for the future, despite these unusual times. The Board will continue to spearhead and take bold decisions that will yield positive results in all segments of the Company’s business. The Company will continue to promote innovation and has since launched a digital roadmap for its future.

Consequently, several new local and Group applications have been developed and are now being implemented to enhance our service and customers’ unique experience. New e-solutions are being implemented within our network of service stations to monitor real time data and to guarantee the highest quality in all our operations.

The Company, being the first to solarize its network stations in 2018, currently boasts of twenty-three (23) service stations on solar energy power. This project is on-going as part of the Company’s overall plan to modernize its network and to propose renewable energies. Our ambition remains to solarize at least 50% of our retail outlets within the next four (4) years.

Over time, we have consistently researched and delivered unto the market, top notch products like Excellium diesel and Excellium gasoline with state-of-the-art additives packaged to protect and improve the performance of customers’ vehicle engines. We have also provided our customers with a large range of lubricants, Car Care products and various means of payment, including the Total Card solution. We are excited that the quality of these products, as well as the professionalism in our service delivery, continues to receive high patronage from our loyal customers. We will build on
these achievements as part of our strategy to deliver quality products and services to our customers and to enhance long-term shareholder value.

Acknowledgment

On behalf of the Board of Directors, I would like to express my deep gratitude to the Management, Staff, Customers and Business Partners of the Company for their continued support. They truly have enabled us to achieve our objectives in 2020 and to maintain the Total brand as one of the best performing brands in Ghana. I am confident to say that their support has also enabled our success.

In conclusion, I would like to thank my colleagues at the Board for their continuous and unwavering commitment in providing strategic leadership and thereby enabling the Company to remain a major player in the Petroleum Industry in Ghana.

I sincerely thank you all for your time and participation in this meeting today.

Until we meet again, I wish you all the very best even in these uncertain times. Please continue to adhere strictly to all COVID-19 protocols issued by the Health Authorities and at the various places you visit, and stay safe wherever you find yourselves.

Samba Salfal Seye
Chairman

• Total Petroleum Ghana Limited (TOTAL.gh) on Africanfinancials