ZEN Petroleum profit after tax reached GH¢172.62 million in the six months ended September 30, 2026, giving the downstream petroleum company a profitable first half since its listing on the Ghana Stock Exchange.
ZEN Petroleum Holdings Plc generated GH¢3.56 billion in revenue and GH¢260.26 million in profit before tax during the period, according to its financial statements.
The holding company was incorporated in December 2025 and listed on the Ghana Stock Exchange on April 22, 2026, after raising GH¢640 million in equity capital.
With no comparable figures for the same period last year, investors have little historical information against which to judge the pace of growth. The first half results instead provide an early picture of profitability, liquidity and the amount of capital required to keep the business running.
Margins Strong, but Asset Sale Lifts Profit
ZEN recorded cost of sales of GH¢3.19 billion, leaving gross profit of GH¢367.06 million and a gross margin of about 10.31%.
Selling, general and administrative expenses amounted to GH¢150.86 million, equivalent to about 41% of gross profit.
The company remained profitable from its main operations, but part of the final result came from income that may not recur at the same level.
Other income totalled GH¢43.86 million, including GH¢31.42 million gained from the disposal of property and equipment. That asset disposal represented roughly 12% of profit before tax.
Without the gain, profit before tax would have been about GH¢228.84 million, meaning ZEN would still have posted a substantial profit from the six month period.
The company’s net profit margin stood at approximately 4.85%, meaning less than five pesewas of every cedi of revenue ultimately remained as profit.
That leaves earnings sensitive to changes in fuel procurement costs, exchange rates and operating expenses.
No Borrowings, but Supplier Credit Matters
One of the stronger features of the balance sheet is the absence of reported borrowings.
Finance costs were only GH¢449,000, while finance income stood at GH¢638,000.
The lack of conventional debt reduces exposure to interest costs and refinancing pressure, but ZEN still relies significantly on suppliers to finance its operations.
Trade and other payables stood at GH¢563.38 million and accounted for more than 93% of total liabilities.
Total assets reached GH¢1.60 billion, while equity stood at about GH¢1 billion.
Inventories, however, were particularly large at GH¢656.56 million, accounting for about 41% of total assets. Trade and other receivables added another GH¢327.57 million.
Together, those two items tied up more than 60% of ZEN’s asset base.
Profit Has Yet to Fully Convert Into Cash
Cash flow provides the clearest contrast with the reported profit.
Despite earning GH¢172.62 million after tax, ZEN recorded negative operating cash flow of GH¢13.64 million.
Working capital absorbed a substantial amount of cash. Inventory increased by GH¢106.38 million, while a reduction in trade and other payables used GH¢116.59 million. Receivables absorbed another GH¢4.13 million.
Before tax payments, operations generated GH¢48.66 million in cash. Tax payments of GH¢62.30 million pushed the final operating cash position into negative territory.
Cash and cash equivalents closed the period at GH¢85.55 million.
ZEN’s current assets exceeded its short term liabilities, producing a current ratio of about 1.92. Once inventories are excluded, however, the quick ratio falls to roughly 0.76.
That means the company depends heavily on selling inventory, collecting customer debts and maintaining supplier support to meet short term obligations.
Next Results Put Cash Conversion in Focus
ZEN also spent GH¢44.01 million on property and equipment while receiving GH¢34.10 million from asset disposals.
Its financing activity was equally significant. The company received GH¢640 million from its share issuance and paid GH¢25.23 million in issuance costs, leaving about GH¢614.77 million in net proceeds.
During the period it also settled a GH¢600 million dividend recognised in the previous financial year. The payment was therefore not linked to the current six month profit, but it absorbed nearly all of the net proceeds from the share issue.
ZEN enters its next reporting period with several strengths: profitability, no reported borrowings, substantial equity and a large revenue base.
The next test is cash conversion.
Investors will be watching whether the GH¢656.56 million inventory position turns into sales and cash, whether receivables are collected efficiently and whether earnings remain strong without sizeable gains from asset disposals.
