BOST records consistent financial growth over 3 years

Bulk Oil Storage and Transportation (BOST) has maintained a steady financial growth trajectory over the past three years, amassing a cumulative profit of GH¢710 million.

The company’s profit for the 2023 financial year was GH¢208 million, compared to GH¢342 million in 2022 and GH¢160 million in 2021.

BOST’s equity position also improved from a negative GH¢248 million in 2021 to a positive GH¢277 million in 2023, laying a robust foundation for future growth. The company’s overall financial performance is largely attributed to prudent management.

At the company’s Annual General Meeting (AGM), BOST Chairman Ekow Hackman explained the company’s reduced profit in 2023 compared to 2022.

He highlighted BOST’s unique role in the government’s Gold-for-Oil (G4O) Programme, which aimed to mitigate the impact of Foreign Exchange fluctuations and rising inflation. The programme’s operation in 2023 resulted in a reduction in the price of a litre of Diesel from over GH¢23 to an average of GH¢14.

Hackman noted that the company’s reduced profitability in 2023 should be seen in the context of the government’s deliberate policy to shield the Ghanaian consumer from the adverse effects of imported inflation.

He commended the company’s management for playing a vital role in implementing this strategic government policy while meeting the operational and investment obligations of the company.

The volumes of fuel products traded by BOST increased by 235 per cent from 318.3 million litres in 2022 to 1.1 billion litres in 2023. The company’s market shares also increased to 29 per cent in 2023 from eight per cent in 2022. The value of fixed assets also increased from GH¢1.478 billion in 2022 to GH¢1.620 billion in 2023.

Looking ahead, Hackman pledged the company’s commitment to continue investing in human capacity, adopting new technology, including Artificial Intelligence (A.I.), to enhance efficiency and productivity.

The diversification of energy products, he said, will be key to managing the Energy Transition, which is required to achieve net zero carbon emissions. The company’s next Strategic Plan will be centered around these broad policies.

The Minister of Public Enterprises, Joseph Cudjoe, expressed hope that BOST’s management will continue on this path to eventually pay dividends to the government, in line with the vision of President Nana Addo Dankwa Akuffo Addo.

He also acknowledged the significant role the company has played in implementing the Gold for Oil programme.

The Minister of State for the Ministry of Energy, Herbert Krapa, lauded BOST’s achievements, noting that the company is now positioned to pay dividends to the government of Ghana in the immediate future.

He highlighted the significant impact of BOST on petroleum product prices and inflation in the country, particularly through its leadership in implementing the Gold for Oil Program spearheaded by the Vice President, Dr Mahamadu Bawumia.

The Director-General of the State Interest and Governance Authority (SIGA), John Boadu, acknowledged the fiscal and infrastructural challenges, and noted that there is room to improve financial performance and drive further growth. He expressed confidence in the success story of BOST, given the alignment of interests among the Board of Directors, the government, and the management.

Looking forward, BOST’s Managing Director, Edwin Provencal, expressed excitement about the company’s strategic plan and its potential for the future.

He stated, “I am excited to see our strategy yielding the required gains for the shareholder and the Ghanaian taxpayer. I believe that the company has a very bright future. With our strategy, we are ready to embrace the great opportunities that lie ahead, and we are committed to continue delivering value for all our stakeholders.”