Implement good business model, keep good financial records – Deloitte Associate Director to OMCs, BDCs

During the Downstream Petroleum Dialogue organized by COMAC, Deloitte Ghana’s Associate Director, Dennis Brown, urged petroleum downstream players to manage their finances transparently to secure bank financing.

He stressed that robust working capital management, accurate financial reporting, and strong supplier relationships are essential for demonstrating repayment capacity.

Brown highlighted that banks rely on credible historical data to validate forward-looking projections and warned that inefficient management of credit terms could necessitate costly bridge financing, thereby hurting margins.

He also called on banks to establish tailored risk management frameworks specifically for the petroleum sector rather than relying on generic assessments, suggesting innovative approaches like syndication or partnering with insurance firms to mitigate risks.

His recommendations aim to enhance financial sustainability in the margin-driven downstream petroleum market.