Author: Beyonce Diamond Kpogli
The Bulk Oil Storage and Transportation Limited Company (BOST) announced a profit of 112% to GH¢ 342 million from GH¢161 million in 2011.
This growth marks the company’s second successive profit in two years after 10 previous years of losses.
This was on BOST’s 169% increase in revenue from GH¢1.12 billion to GH¢ 3.02 billion within the same period.
The Board Chairman of BOST, Ekow Hackman, at the 2nd Annual General Meeting (AGM) of BOST in Accra on Thursday, 17th August 2023, stated that the performance was in the context of a miserable run of losses which had been recorded for more than a decade until 2021.
“Central to our transformation has been the restoration of our business model, which involves the effective utilization of our strategically located fuel depots connected by a network of pipelines and barges,” Mr. Hackman stated.
“The revival of these assets has enabled us to deliver fuel products securely and cost-effectively to consumers across the country,” he added.
Ekow Hackman further disclosed that revenue from fuel product sales increased by 387% in 2022.
Additionally, revenue from gasoline sales increased by 224%, from GH¢ 340.63 million to GH¢ 1.1 billion, while gas oil sales increased by 352%, from GH¢ 331.1 million to GH¢ 1.5 billion.
Mr. Hackman indicated that the positive trading performance was attributed to improved financing arrangements, more effective customer engagement and retention initiatives as well as the prudent management of trading risks.
Nonetheless, the contribution of the BOST margin to revenue declined by 10 % to GH¢ 343.26 million from GH¢ 380.42 million in 2021, while storage fees increased by 27 % from GH¢ 21.89 million in 2021 to GH¢ 27.72 million.
BOST’s rack fees also increased by 24%, from GH¢ 30.75 million in 2021 to GH¢ 38.17 million in 2022.
Minister of Energy, Dr. Mathew Opoku Prempeh, stated that the remarkable performance of BOST reinforces that State-Owned Enterprises can generate profits, pay dividends and make significant contributions to the government’s fiscal policies with the right leadership, attitude, and balance.
Regarding fuel security, he said the government is committed to equipping BOST with the necessary resources to fulfill its mandate fully.
“We are actively considering different modalities for achieving this goal. BOST has been at the center of the Gold for Oil policy, which seeks to provide fuel to Ghanaians at competitive prices by reducing our dependence on forex for import of petroleum products”.
The AGM was attended by the Minister of Energy, Dr. Mathew Opoku Prempeh; the Minister of Public Enterprises, Joseph Cudjoe; the Director-General of the State Interests and Governance Authority (SIGA), Edward Boateng, staff of the company and representatives of partner companies.
