Dignitaries at the event
The Bulk Oil Storage and Transport Limited Company (BOST) over the last three years has undergone a remarkable transformation recording an increase in its net profit by 112 per cent to GH¢ 342 million from GH¢ 161 million in 2021.
BOST’s transformational achievement was attributed to the restoration of its business model which involves the effective utilization of its strategically located fuel depot connected by a network of pipelines and barges.
This has enabled the delivery of fuel products securely and cost-effectively to consumers across the country.
Speaking at the 2023 Annual General Meeting (AGM) held in Accra, BOST Board Chairman, Ekow Hackman, indicated that the company achieved a net profit after tax of GH¢ 342,494,604 compared to GH¢ 160,718,361 in the previous year, an increase of 112 per cent.
Similarly, its operating income also increased by 69 per cent from GH¢ 254,291,419 in 2021 to GH¢ 428,923,102 in 2022.
“This was on the back of a 77 per cent increase in revenue from GH¢ 1.121 billion in 2021, to GH¢ 3.019 billion in 2022,” he said.
The Board Chairman further noted that the revenue from fuel product sales saw an increase of 387 per cent in 2022 compared to 2021.
Revenue from gasoline sales increased by 224 per cent, from GH¢ 340,633,871 to GH¢ 1,103,299,371, whilst gasoil sales increased by 352 per cent, from GH¢ 331,063,261 to GH¢ 1,495,912,905.
“This positive trading performance can be attributed to improved financing arrangements, more effective customer engagement and retention initiatives as well as the prudent management of trading risks,” he added.
It also revealed that the contribution of the BOST margin to revenue declined by 10 per cent to GH¢ 343,260,945 from GH¢ 380,416,951 in 2021.
“Storage fees increased by 27 per cent, from GH¢ 21,889,891 in 2021 to GH¢ 27,715,044, whilst Rack fees also increased by 24 per cent, from GH¢S 30,753,298 in 2021 to GH¢ 38,172,046 in 2022,” he noted.
Minister of Energy, Matthew Opoku Prempeh, indicated that the exemplified gains by BOST should be emulated by State Owned-Enterprise (SOEs).
He said BOST’s transition from a negative equity position (GH¢ 248,190,799) in 2021 to a positive equity position (GH¢ 86,466,542) in 2022 has enabled the company to pay dividends to the government.
Mr. Opoku Prempeh announced that the government is working towards retooling the Tema Oil Refinery (TOR) to enable it to refine crude oil.
“We believe that there can be significant gains that can be achieved through the collaboration between BOST and TOR.
An effectively functioning TOR will compliment BOST’s effort by refining products and delivering them for storage and distribution thereby alleviating the burden of high prices for Ghanaian petroleum consumers ” he said.
Director General State Interest Governance Authority (SIGA), Edward Boateng, on his part stated that despite the challenges posed by the Russian invasion of Ukraine on Ghana’s economy as well as the constraints of funding of products import due to the inability of local banks to support the business with the requisite Letters of Credit.
GDP growth is estimated to have slowed to 3.2% in 2022, down from 5.4% in 2021.
The banking sector vulnerabilities increased due to the cedi depreciation and the impact of the Domestic Debt Exchange Program (DDEP) which was concluded in February 2023.
“Despite all these challenges, BOST has demonstrated resilience and commitment to delivering its mandate and ensuring that the shareholder receives value from the investment” he said.
By Prince Fiifi Yorke