On the Ghana Stock Exchange (GSE,) in the recent 2016FY financial performance report of Ghana Oil Company Limited (GOIL), revenue growth was a key highlight of the company’s performance over the 52 weeks period.
GOIL managed to beat the competition within the Oil Marketing Sector to deliver a marginal revenue growth of 3.67% in 2016FY.
Revenue grew from GHS 1,954,505,000 in 2015FY to GHS 2,026,305,000 in 2016FY. The listed OMC adopted a strategy focused on competitive fuel pricing at the pump throughout last year. The company maintained stable fuel prices at most times whenever the prices of fuel products increased as a result of the de-regulation of the sector; this made GOIL products very attractive for patronage.
Gross profit margin increased from 5.64% in 2015FY to 7.33% in 2016FY. Gross Profit figure recorded during the period increased by 34.62% to GHS 148,499,000. The operating profit figure of the company also shot-up by 75.54%; to GHS 62,738,000 in 2016FY.
Profit after Tax figure increased by 92.32%; from GHS 22,211,000 in 2015FY to GHS 42,717,000 in 2016FY.
Earnings per share (EPS) value inched up marginally from GHS 0.088 in 2015FY to GHS 0.108 in 2016. Investments projects undertaken by the company over the 52 weeks translated into a 44.75% rise in the value of total assets for the period. Total Assets increased from GHS 521,235,000 in 2015FY to GHS 754,492,000 in 2016FY. The value of bank overdraft facilities and short term loans fell by 12.93% and 67.73% over the 52 weeks period.
GOIL undoubtedly is fundamentally sound and the share price possess an upside potential of +23.61% in the short term. The equity which has been tipped by GN Analysts to be one of the best performing stocks on the bourse in 2017 still remains undervalued. The earnings report for 2016FY of the company will positively influence the share price of the equity in the short-term.
Trading activity on the bourse ended with 6 gainers (BOPP, GCB, GGBL, SCB, SIC and TOTAL) and 1 loser (CAL) yesterday. CAL topped the trading chart in terms of volume as 4,026,400 shares worth GHS 2,619,545.00 changed hands. Returns on the Composite and Financial Stock Index pegged at 5.83% and 8.28% respectively.
Trading activity on the Ghana Alternative Market (GAX) was hushed yesterday as no shares changed hands.
HORDS currently lead record capital gains on the GAX, appreciating by 25% from 2016 year open.
The Cedi gained marginally to the British Pound and Euro but lost to the dollar yesterday. The local currency exchanged at a mid-rate of GHS 4.3141 to the USD, GHS 5.3411 to the GBP and GHS 4.6038 to the EURO.
The GCFM Cedi index, a measure of the holistic performance of the Cedi on the inter-bank market now records a year-to-date depreciation of 3.04%.