TotalEnergies seeks reforms in local content framework

TotalEnergies Marketing PLC says the regulatory framework guiding the implementation of the local content policy in the market focuses on shareholding rather than value creation in the supply and distribution chain.

The phenomenon, it said, does not only discriminate against existing partly foreign-owned companies but has also led to market restrictions contrary to the legitimate expectations of these companies as investors in the country. 

It argued that the unintended consequences of this regulatory framework in terms of attraction of foreign direct investment into the country cannot be overemphasised. 

Hence, just like other countries in the sub-region that have successfully implemented local content policies in their oil and gas sectors, it is worth considering that an implementation approach which aims at local content development for both Ghanaian and existing non-fully Ghanaian companies operating in the industry will enhance the impact of this laudable initiative on the economy of Ghana. 

The board chairman of the company, Philippe Ebanga, in his annual report, said “It is believed that an approach that focuses on the quantum of composite value added to, or created in Ghana through the utilisation of Ghanaian resources and services will better yield the intended objectives of the local content policy in the downstream petroleum sector. 

This will accommodate both international and Ghanaian companies operating in the country’s oil and gas industry with its attendant several benefits and advantages for indigenous or local companies in the industry, and the country in general.”

Mr Ebanga, however, acknowledged the fact that in recent times, the downstream petroleum industry has also been characterised by a phased implementation of the local content policy which aims to harness the benefits of the industry for Ghanaians. 

“It is commendable and worth highlighting that the industry is now largely dominated by indigenous Ghanaian companies who currently control over 80% of the market.” He said.

Business performance 

Meanwhile, the company, one of the majors in the downstream petroleum industry in Ghana, posted a consolidated profif of GH¢172 million for the year 2023.

This is compared to GH¢158 million it posted in the same period of 2022.

For the year ending December 31, 2023, the Group saw its revenue grow to GH¢6,059 million as against the GH¢5,686 million it recorded in 2022. 

This performance, it said, demonstrated the resilience of the company’s operating strategies considering the difficult business environment that characterised the year 2023.

Dividend

The board is expected to recommend for shareholders’ consideration and approval, a final dividend of GH¢81.018 million, representing GH¢0.7242 per share in respect of the year ended December 31, 2023. 

This will sum up to a total dividend of GH¢126.106 Million, representing GH¢1.1272 per share, an increase of 8% in total dividend to be paid compared to 2022. 

The increment translates to a dividend yield of 27.76% for the year 2023 compared to 26.09 % in 2022. 

The final dividend recommended by the Board, if approved by Shareholders, will be paid to Shareholders on July 31, 2024 subject to withholding tax where applicable. 

According to the Board Chairman said: “The Board of Directors, approved an interim dividend payment in the amount of GH¢45.088 million, representing GH¢0.4030 per share in October 2023 which was paid to Shareholders in December 2023.”

Solarisation of network

In its quest to solarise its operations, Mr Ebanga said during the year under review, the company extended its solarisation project to other service stations on its network thereby increasing the number of service stations with solar installations from 102 service stations as at the end of 2022 to 128 service stations as at the end of 2023. 

The service stations that have benefitted from these solar installations, he confirmed, have recorded significant savings in electricity consumption for their operations “thereby reducing our scope 1 emissions that is, direct emissions from owned or controlled sources within the framework of TotalEnergie’s Climate Ambition which is to achieve net zero (carbon emissions) by 2050. 

We will continue to roll out this project in phases to more stations in the period ahead.”