Quantum Terminals posted profit after tax of GH¢23.6 million for the nine months ended September 30, 2025, maintaining profitability despite foreign exchange headwinds and rising operational costs at its strategic LPG storage facilities, according to management financial statements released by the Ghana Stock Exchange listed company.
The result represents a 6.3% increase from the GH¢22.2 million earned in the corresponding period of 2024, demonstrating the company’s ability to navigate volatile macroeconomic conditions while servicing critical petroleum infrastructure that supports Ghana’s energy security.
Revenue declined to GH¢52.7 million from GH¢59 million in the prior year period, driven primarily by lower throughput fees and premium charges from customers using the company’s storage and loading facilities. The company operates an LPG evacuation terminal at Atuabo near the Ghana Gas Processing Facility with 750 metric ton storage capacity, capable of loading up to 1,500 metric tons daily across eight truck loading bays.
What kept Quantum profitable despite the revenue decline was significantly improved foreign exchange management. The company recorded a foreign exchange gain of GH¢7 million compared to a devastating GH¢17.8 million loss during the same period last year. That’s a GH¢24.8 million swing that essentially salvaged the year’s results and demonstrates how Ghana’s relatively stable cedi in 2025 has benefited companies with dollar denominated debt obligations.
Direct operational costs surged to GH¢6.7 million from GH¢3.9 million, with direct wages and salaries nearly doubling to GH¢5.1 million from GH¢2.8 million. The sharp increase in personnel costs likely reflects adjustments to match Ghana’s elevated inflation environment and the need to retain skilled workers in the competitive petroleum sector.
General and administrative expenses also climbed substantially, reaching GH¢23.6 million compared to GH¢13 million in the prior year. Travel and accommodation expenses increased to GH¢1.4 million from GH¢1 million, while group cost recovery expenses rose to GH¢2.6 million from GH¢1.6 million, reflecting the higher cost structure facing Ghanaian businesses.
The company’s balance sheet tells a more encouraging story. Total assets reached GH¢496.2 million, essentially unchanged from GH¢496.5 million at the end of September 2024, but the composition shifted meaningfully. Long term debt declined dramatically to GH¢29.7 million from GH¢80.4 million, representing a 63% reduction that speaks to aggressive debt paydown.
That debt reduction came primarily from the company’s bond and EAIF loan facilities. The Ghana Fixed Income Market 10 year bond dropped to GH¢10 million from GH¢20 million, while the EAIF loan facility fell to GH¢20.7 million from GH¢61.5 million. These reductions demonstrate Quantum’s commitment to deleveraging, though it comes at the cost of reducing financial flexibility for future growth initiatives.
Cash and bank balances stood at GH¢12.5 million at quarter end, down from GH¢19.8 million a year earlier. The company maintains additional liquidity through its debt service reserve accounts totaling GH¢19.4 million, down from GH¢21.9 million. These restricted accounts ensure Quantum can meet its bond obligations even during periods of operational stress.
Shareholders’ equity expanded to GH¢371.5 million from GH¢333.7 million, with retained earnings turning positive at GH¢58.7 million compared to a deficit of GH¢9.6 million previously. The turnaround in accumulated profits reflects the company’s sustained profitability and strategic decision to prioritize earnings retention over aggressive dividend distributions as it works through its debt obligations.
Operating cash flow remained robust at GH¢27.2 million before taxes and interest, though this declined from GH¢50.1 million in the prior year period. After servicing debt with GH¢10.2 million in loan interest payments and paying GH¢8.8 million in taxes, net cash from operating activities totaled GH¢9.1 million compared to GH¢21.2 million previously.
The company deployed GH¢20.4 million toward repaying borrowings, while investing GH¢2.9 million in property, plant and equipment. This capital allocation prioritizes debt reduction over expansion, a prudent strategy given the need to maintain bondholder confidence and reduce interest expense.
Fair value imputed interest income reached GH¢16.7 million, representing accounting adjustments related to related party receivables that totaled GH¢154.9 million on a non current basis. These intercompany balances with entities like Quantum Gas HoldCo and The Quantum Terminals Group reflect the integrated structure of the broader Quantum Group’s operations.
Finance costs totaled GH¢8.4 million for the nine months, down from GH¢11 million in the prior year despite higher interest rates in Ghana’s debt markets. The decline reflects the reduced debt balances as the company systematically pays down its obligations. Bond interest and charges consumed GH¢3.5 million, while loan interest and fees took another GH¢4.8 million.
Earnings per share came in at GH¢0.21, up from GH¢0.20 in the corresponding period of 2024, based on the company’s 110 million shares outstanding. The stable share base and modest earnings growth provide shareholders with predictable returns, though the lack of dividend payments means investors must rely on potential capital appreciation for returns.
EBITDA totaled GH¢25.6 million compared to a much stronger GH¢55.6 million in the prior year period, reflecting the revenue decline and cost pressures before accounting for the foreign exchange gain that ultimately supported bottom line profitability. This EBITDA compression highlights the operational challenges facing the business independent of forex movements.
Property, plant and equipment stood at GH¢296.5 million, down slightly from GH¢311.6 million, with depreciation outpacing new capital investments. The company’s storage tanks, civil works, and loading infrastructure represent critical assets that require ongoing maintenance and eventual replacement, creating long term capital needs that must be balanced against debt service obligations.
Quantum Terminals made history in 2018 as the first non financial institution to list a corporate bond on the Ghana Fixed Income Market, issuing a 10 year tenor guaranteed 75% by GuarantCo, an AA rated development finance institution. The bond also listed on London Stock Exchange’s International Securities Market, making it the first local currency corporate bond from Ghana and West Africa to achieve that distinction.
The company has maintained a strong track record of meeting its bond obligations, most recently transferring GH¢1.7 million for September interest payments well ahead of the required deadline. This consistent compliance with bond covenants supports investor confidence and potentially paves the way for future capital market access by other Ghanaian corporates.
Looking at the competitive landscape, Quantum Terminals remains one of Ghana’s key petroleum infrastructure providers, with its Atuabo facility strategically positioned to offtake LPG produced as a byproduct at the Ghana Gas Processing Facility. The terminal handles LPG that supports cleaner cooking alternatives to wood and charcoal, contributing to health and environmental benefits particularly for women and children who spend more time exposed to cooking fumes.
The third quarter results demonstrate Quantum’s resilience in a difficult operating environment. While revenue pressures and cost inflation create headwinds, aggressive debt reduction and improved forex management position the company on a firmer financial foundation. The challenge ahead is whether Quantum can reverse the revenue decline and stabilize margins while continuing to service its remaining debt obligations.
For bondholders, the aggressive debt paydown provides comfort that the company takes its obligations seriously and is willing to sacrifice growth opportunities to maintain financial stability. For equity investors, the lack of dividends and modest earnings growth may limit near term returns, though the strengthening balance sheet and strategic asset base offer longer term value as Ghana’s LPG market continues developing.
The company’s work in progress account stood at just GH¢2.3 million compared to GH¢12.6 million a year earlier, suggesting minimal expansion projects currently underway. This reflects management’s conservative approach during a period focused on financial consolidation rather than aggressive capacity additions.
Inventory levels remained modest at GH¢838,000, down slightly from GH¢940,000, consisting primarily of spare parts, tools, and minimal fuel stock. The low inventory requirements reflect the nature of Quantum’s business model, where customers own the LPG being stored and the company primarily provides infrastructure and handling services rather than holding product for its own account.
Trade receivables increased marginally to GH¢5.8 million from GH¢5.6 million, with the company maintaining an impairment provision of GH¢50,600 against potential bad debts. The relatively small receivables balance relative to annual revenue suggests efficient collections processes or contractual arrangements that minimize credit exposure to customers.
Current tax liabilities declined to GH¢3.9 million from GH¢5.1 million, reflecting payments made during the period and adjustments to tax provisions. The company paid GH¢8.8 million in income taxes during the nine months, demonstrating its role as a meaningful contributor to government revenues despite operating in a capital intensive sector with substantial depreciation shields.
The deferred tax liability increased to GH¢68.2 million from GH¢73 million, driven by temporary differences between book and tax treatment of assets, particularly the revalued property, plant and equipment that forms the bulk of Quantum’s asset base. These deferred taxes will become payable over time as assets are depreciated or disposed of.
What stands out most in these results is the stark contrast between Quantum’s operational performance and its overall profitability. Strip away the foreign exchange gain, and the company would have posted significantly weaker results. That vulnerability to forex movements underscores the risk inherent in operating dollar denominated debt in a cedi functional currency environment, even as it also demonstrates how much Ghana’s improved currency stability in 2025 has benefited companies in Quantum’s position.
The LPG sector in Ghana continues facing structural challenges around pricing, distribution infrastructure, and competition from traditional fuels. Quantum’s role as an evacuation terminal makes it dependent on gas production volumes at the upstream facility and customer decisions about how much LPG to offtake and store. The company can’t easily control its top line growth, making cost discipline and financial management the primary levers available to management.
Looking ahead to the final quarter and into 2026, Quantum faces questions about whether it can stabilize or grow revenues while continuing to reduce costs to offset inflationary pressures. The company’s debt maturity profile will also matter, with investors watching whether the aggressive paydown creates sufficient headroom to weather any operational challenges or whether additional capital might eventually be needed to maintain and upgrade aging infrastructure.
For now, though, Quantum Terminals has delivered what bondholders and shareholders needed to see: profitability maintained, debt reduced substantially, and financial discipline enforced even when it means foregoing growth opportunities. In Ghana’s volatile business environment, sometimes survival and stability represent success stories of their own.
Source: newsghana.com.gh
