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The Bulk Oil Storage and Transportation Company Limited (BOST) recorded a net profit of GHC342.5 million in 2022.
The figure represents an increase of 112% over the 2021 earnings of GHC160.7 million, and is the second consecutive year that the state-owned company has returned profit.
Consequently, its operating income also increased – by 69% to GHC428.9 million in 2022 from GHC254.3 million in 2021. This came on the back of a 77% increase in revenue to GHC3.019 billion in 2022 from the GHC1.121 billion recorded in 2021.
The remarkable performance was driven by substantial growth in revenues recorded from sale of fuel products, which increased by 387% in 2022 compared to 2021. Revenue from gasoline sales increased by 224 percent to GHC1.1 billion during the year under review from GHC340.6 million in 2021.
Meanwhile, gasoil sales also appreciated exponentially; by 352% to GHC1.4 billion in the year under review from GHC331.1million in 2021.
Chairman of the board of directors, BOST, Ekow Hackman, commenting on the results said: “This positive trading performance can be attributed to improved financing arrangements, more effective customer engagement and retention initiatives, as well as prudent management of trading risks”.
He revealed that the BOST margin’s contribution to revenue declined by 10% to GHC343.3 million from GHC380.4 million in 2021.
During the 2022 financial year, storage fees increased by 27% to GHC27.7 million from GHC21.8 million in 2021 – while rack fees also increased, by 24% to GHC38.2 million in 2022 from GHC30.7 million in 2021.
Mr. Hackman was speaking at the company’s second annual general meeting in Accra, and stated that the firm consolidated its position as second among depot operators nationwide and first outside the Greater Accra Region during the year under review.
“I am happy to inform you that as of May 2023, BOST is now the market leader,” he added.
Against these developments, he said, the company has finally transitioned from a negative equity position of GH¢248.2million in 2021 to a positive equity position of GH¢86.5million in 2022.
Furthermore, he noted the future of BOST remains promising and the board is committed to ensuring that profitability becomes the norm.
He outlined a number of measures to further enhance efficiency including the automation of depots, which will guarantee world-class delivery of products at depots and attract a significant volume of products.
He also highlighted the concluded Front-End Engineering Design’s (FEED) significance for the Tema Kumasi Pipeline Project (TKPP), which is expected to help reduce the company’s carbon footprint.
He said the planned construction of LPG tanks is anticipated to ensure diversification of the revenue streams as well as support government initiatives on youth employment. “We are also committed to providing world-class training for our staff to ensure they are abreast with emerging technologies, especially the impact of artificial intelligence on the workplace.”
The Minister of Energy, Dr. Matthew Opoku Prempeh – speaking at the AGM, disclosed that in the quest to maintain the positive trajectory, management of the company has sought a debt-equity swap that is currently awaiting approval from the Ministry of Finance.
Against this background, he urged the State Interests and Governance Authority (SIGA) and Ministry of Public Enterprises to support BOST and ensure that this objective is fully achieved.
Dr. Opoku Prempeh commended the board and management for the impressive performance, adding that BOST is a perfect example of how state-owned enterprises can generate profits, pay dividends and make significant contributions to government’s fiscal policies.
On the issue of fuel security, he said: “Government is committed to equipping BOST with the necessary resources to fulfil its mandate fully. We are actively considering different modalities for achieving this goal”.
He said government intends to retool the Tema Oil Refinery (TOR) so as to enable it refine crude oil. “We believe that there are significant gains that can be achieved through the collaboration between BOST and TOR.
“An effectively functioning TOR will complement BOST’s efforts by refining products and delivering them for storage and distribution, thereby alleviating the burden of high prices for Ghanaian petroleum consumers.”
The Minister of Public Enterprises, Joseph Cudjoe, on his part posited that BOST’s turnaround is a significant development aligned with the ministry’s goal of addressing long-standing challenges that confront SOEs and prevent them from fulfilling their full potential.
“The BOST model has vindicated my proposition during my visits to various public enterprises last year – that with the right balance, management of SOEs can make a huge profit from the substantial assets they possess,” he added.
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