The Bulk Oil Storage and Transportation Limited Company (BOST) has revealed a remarkable upswing in its financial performance, with its net profit margin surging from GH₵161 million in 2021 to an impressive GH₵342 million in 2022.
This significant leap was unveiled by BOST’s board chairman, Mr. Ekow Hackman, during the company’s second annual general meeting held at its headquarters in Accra on August 17, 2023.
Mr. Hackman highlighted that the net profit achieved in 2022 stands at a noteworthy 112% of the previous year’s earnings. He underscored the transformative journey that BOST has embarked upon over the past three years, which has seen the company evolve from a heavily indebted entity to a remarkably profitable one.
“In 2022, BOST increased its net profit by 112% to GH₵342 million from GH₵161 million in 2021. This performance should be viewed in the context of a miserable run of losses which had been recorded for more than a decade until 2021,” Mr. Hackman stated.
The chairman attributed this success to a strategic pivot that revitalized BOST’s business model at its core.
The revival of strategically located fuel depots interconnected by pipelines and barges has played a pivotal role in enabling secure and cost-effective delivery of fuel products nationwide. BOST’s dedicated workforce and management efforts have been instrumental in bolstering the company’s revenue-generating assets from a mere 34% in 2017 to a robust 97%.
“We are committed to ensuring that 100% of our assets are generating revenue by the end of 2023,” Mr. Hackman emphasized.
The chairman also highlighted the rise in the BOST margin from 7 pesewas to 9 pesewas in December 2022. This increase in margin bolstered the company’s financial resources, facilitating necessary repairs and maintenance for BOST’s facilities situated in areas where private sector participation is limited.
Dr. Matthew Opoku Prempeh, the Minister of Energy, who was present at the event, lauded BOST’s management for steering the company from debt-ridden waters to a profitable position. Dr. Prempeh commended the progress made by BOST and encouraged the company to sustain its momentum and aspire for even greater accomplishments.
“BOST’s success contributes to the fiscal policies of the government and supports our national growth and development agenda. It is my expectation that other State-Owned Enterprises (SOEs) will learn from the BOST story and replicate this performance. This, I believe will ensure that government can effectively execute its flagship programs using revenues generated by its SOEs,” the Minister affirmed.
Dr. Prempeh also revealed that the government is actively working to revitalize the Tema Oil Refinery, aiming to synergize its efforts with BOST’s initiatives. This collaboration aims to refine products for subsequent storage and distribution, ultimately alleviating the burden of high petroleum prices for Ghanaian consumers.